U.S. stock futures jumped Wednesday after President Donald Trump said he was suspending Iran attacks for two weeks just ahead of his 8 p.m. ET deadline, pausing a five-week conflict that closed a crucial waterway for global energy supply and sent equity prices reeling.
Futures for the Dow Jones Industrials rocketed 1,291 points, or 2.8%, to 48,103.
Futures for the S&P 500 hiked 185.75 points, or 2.8%, to 6,842.50
Futures for the NASDAQ leaped 845.25 points, or 3.5%. to 25,215.25.
West Texas Intermediate crude futures tumbled more than 16% to $94.41 a barrel following Trump’s declaration. International benchmark Brent for June delivery lost more than 14% to $93.67 per barrel.
“I agree to suspend the bombing and attack of Iran for a period of two weeks,” Trump posted on Truth Social.
“We received a 10-point proposal from Iran, and believe it is a workable basis on which to negotiate.”
Trump noted that the “double-sided” ceasefire was contingent on Iran agreeing to an opening of the Strait of Hormuz.
Iran’s Supreme National Security Council has agreed to reopen the waterway for two weeks as long as all attacks are halted, according to a statement from Iran’s Foreign Minister. The statement said transit would need to be coordinated with Iran’s Armed Forces. Israel agreed to the ceasefire as well, according to media reports.
Stocks that have been under pressure this year rallied in premarket trading, with the megacaps Nvidia and Amazon jumping more than 3% and 4%, respectively. Tesla shares advanced more than 4%.
Shares of JPMorgan and Boeing climbed more than 2% and 3%, respectively.
On the other hand, energy stocks that have surged since the start of the conflict faltered in the premarket, with shares of Exxon Mobil dropping more than 6% and Chevron down more than 4%.
In Japan, the Nikkei 225 leaped 5.4% Wednesday, while in Hong Kong, markets returned with a 3.1% hike.
Oil prices dropped $19.42 to $93.53 U.S. a barrel.
Gold prices jumped $139.40 to $4,824.10 U.S an ounce.
