The U.S. stock market experienced a significant rally, with the Dow Jones climbing 1,380 points (nearly 3%), the S&P 500 up over 2.5%, and the Nasdaq 100 rising almost 3%. This surge follows Donald Trump’s announcement of a two-week pause in military actions against Iran, which has led to a conditional ceasefire and a temporary resumption of energy transit through the Strait of Hormuz. The energy sector, however, faced pressure as WTI crude oil prices plummeted over 17% to around $93.4.

The market’s positive momentum was largely driven by gains in technology and cyclical stocks, including major players like Nvidia, Amazon, and Tesla. Conversely, energy stocks such as Exxon Mobil and Chevron saw declines due to the sharp drop in oil prices, which directly impacts their revenue and margins. Delta Air Lines also benefited from lower jet fuel costs, boosting shares by 12% in premarket trading.

Going forward, the sustainability of the ceasefire and oil price stabilization will be crucial for market sentiment, particularly for energy stocks and sectors sensitive to fuel costs. The current dynamics suggest a cautious optimism, but ongoing geopolitical developments will remain a key focus for investors.

Source: xtb.com