US-Iran Ceasefire Agreement Sparks Broad Wall Street Rally

US equities closed higher on Wednesday as geopolitical tensions eased following an agreement between the United States and Iran to implement a conditional ceasefire. The move comes as markets reacted to a sudden shift in the diplomatic landscape in the Middle East. President Donald Trump announced a two-week pause on planned military strikes against Iran, provided that the Strait of Hormuz is reopened. This critical maritime chokepoint is essential for the global transit of crude oil, and its reopening significantly reduces the immediate risk of a wider regional conflict and potential energy supply shocks. Wall Street responded positively to the de-escalation, with the tech-heavy Nasdaq Composite leading the gains, closing up 2.8%. The rally reflects a broader shift in investor sentiment as the threat of imminent military escalation diminished. Analysts suggest that while the ceasefire is temporary and conditional, the immediate reduction in geopolitical risk has restored appetite for risk assets. The market will now closely monitor the actual reopening of the Strait to determine if the pause in hostilities will be extended or if tensions will resume.