Global Markets Surge as U.S. and Iran Agree to Two-Week Ceasefire

Wall Street witnessed a massive rally on Wednesday as news broke that the United States, Israel, and Iran have entered a two-week ceasefire agreement. The move triggered a broad-based surge across global equities and a sharp correction in energy markets, as investors reacted to the sudden reduction in geopolitical risk. President Donald Trump announced the suspension of attacks on Iran, contingent upon the immediate and safe reopening of the Strait of Hormuz. Iranian Foreign Minister Abbas Araghchi confirmed the reopening of the waterway provided attacks cease, signaling a fragile but significant diplomatic opening based on a 10-point proposal from Tehran. The impact on U.S. indices was immediate and substantial. The Dow Jones Industrial Average spiked 1,325.46 points (2.9%) to 47,909.92, while the S&P 500 rose 2.5% to 6,782.81 and the Nasdaq climbed 2.8% to 22,635.00. In the commodities market, U.S. crude oil futures plunged more than 15%, falling well below the $100 per barrel threshold. Sector performance was led by airlines, with the NYSE Arca Airline Index soaring 7.3%. Technology also saw significant gains, with the Philadelphia Semiconductor Index spiking 6.3% and the NYSE Arca Networking Index rising 5.3%. Conversely, oil and natural gas producers bucked the trend, sliding as energy prices collapsed. International markets mirrored the optimism. Japan's Nikkei 225 soared 5.4%, Germany's DAX spiked 5.1%, and the French CAC 40 surged 4.5%. In the bond market, the benchmark ten-year Treasury yield slid 5.2 basis points to 4.291%, reflecting a shift toward risk-on sentiment.