New York: US equities surged sharply as President Donald Trump announced a temporary two-week ceasefire with Iran as the Dow Jones Industrial Average jumped over 1,100 points, while the S&P 500 and Nasdaq Composite gained more than 2 percent.
Investors reacted to easing geopolitical tensions, tumbling oil prices and a sudden improvement in risk sentiment. This rare alignment of positive factors sparked a broad-based rally across sectors and asset classes.
The Dow surged 1,109 points to 47,693.76, with technology, industrials and financials leading the gains with key drivers included Intel, Home Depot and Caterpillar, all seeing multi-percent jumps. The Nasdaq rose 2.48%, fueled by semiconductor and tech stocks like Lam Research, Applied Materials and Intel were standout performers, reflecting renewed optimism in AI and chip demand.
The S&P 500 climbed 2.21%, with broad gains across growth and cyclical sectors with energy lagged due to falling crude prices while consumer discretionary and technology stocks surged. The NYSE Composite gained 1.79%, reflecting strong momentum in large-cap industrials and financials, showing a broad risk-on sentiment sweeping the market.
President Trump’s announcement of a two-week ceasefire with Iran caused a dramatic shift in market sentiment. Investors had priced in the risk of a prolonged Middle East conflict, which had pushed oil higher and equities lower where the news alleviated those fears and triggered a massive rebound.
Oil prices tumbled sharply after President Trump agreed to a two-week suspension of attacks on Iran, easing Strait of Hormuz concerns. WTI crude fell 17 percent to $93.42 per barrel, while Brent crude dropped 16% to $91.65 per barrel, fueling a surge in U.S. stocks and easing inflation fears.
After the Trump‑Iran ceasefire news, precious metals rallied sharply. Spot gold climbed about 2.5 percent to around $4,820 per ounce, reaching a multi‑week high while silver surged around 4 percent to $76+ per ounce as markets reassessed risk and lower oil eased inflation concerns.
Even as the dollar held firm, the temporary ceasefire prompted investors to hedge against potential renewed volatility where metals benefited from both speculative demand and a flight-to-safety trade, boosting prices alongside equities.
