Dow, S&P 500, Nasdaq futures jump after US-Iran ceasefire announcement
U.S. stock futures surged on Wednesday as oil prices plunged following the announcement of a two-week ceasefire between the US and Iran, raising hopes of a reopening of the Strait of Hormuz to shipping.
S&P 500 futures (ES=F) jumped 2.5%, while tech-heavy Nasdaq 100 futures (NQ=F) surged 3.3%. Dow Jones Industrial Average futures (YM=F) climbed 2.4%, roughly 1,100 points, News.Az reports, citing foreign media.
Wall Street stocks recovered from overnight lows after President Donald Trump posted on Truth Social that he would call for a two-week suspension of hostilities, just hours before his 8 p.m. Tuesday deadline to launch a major bombing campaign on Iran. “I agree to suspend the bombing and attack of Iran for a period of two weeks. This will be a double sided CEASEFIRE!” he wrote.
Trump also called for the immediate reopening of the Strait of Hormuz. Iran responded that, “If attacks against Iran are halted, our Powerful Armed Forces will cease their defensive operations. For a period of two weeks, safe passage through the Strait of Hormuz will be possible via coordination with Iran's Armed Forces and with due consideration of technical limitations.”
The news caused oil prices to drop sharply. Brent crude futures (BZ=F) fell 14% to just under $94 per barrel, while West Texas Intermediate crude (CL=F) tumbled almost 15% to about $96 per barrel.
On the corporate side, Delta Air Lines (DAL) is set to report quarterly results before the opening bell. Investors are closely watching for signs of the Iran war’s impact, following flight disruptions and a spike in jet fuel prices.
News.Az
By Nijat Babayev
