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Stocks jumped Wednesday after President Donald Trump said he was suspending Iran attacks for two weeks, pausing a five-week conflict that closed a crucial waterway for global energy supply and sent equity prices reeling.
The Dow Jones Industrials rocketed 1,256.05 points, or 2.7%, to 46,840.51.
The S&P 500 prospered 161.48 points, or 2.4%, to 6,777.94.
The NASDAQ gained 642.21 points, or 2.9%, to 22,660.72.
“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.
The first vessels passed through the Strait of Hormuz, according to ship-tracking service MarineTraffic on Wednesday. However, industry experts say overall traffic has not picked up meaningfully from what the passage experienced during the war.
Energy stocks that have surged since the start of the conflict faltered, with shares of Exxon Mobil and Chevron down more than 5%, each.
Prices for the 10-year Treasury moved higher, lowering yields to 4.27% from Tuesday’s 4.32%. Treasury prices and yields move in opposite directions.
Oil prices let go of $18.14 to $94.81 U.S. a barrel.
Gold prices climbed $100.90 to $4,785.60 U.S. an ounce.
