U.S. stocks surged on Wednesday after President Donald Trump announced a two-week ceasefire with Iran, easing fears of prolonged disruption to global energy supplies. The Dow Jones Industrial Average jumped more than 1,300 points, while the S&P 500 rose 2.5% and the Nasdaq Composite gained 2.8%, extending their recent winning streak.
The rally followed confirmation that both sides agreed to pause attacks and reopen the Strait of Hormuz temporarily, a key route for global oil shipments. The announcement boosted investor confidence that tensions could move toward a broader resolution, even as uncertainty around the durability of the agreement remained.
Oil prices dropped sharply in response, with WTI crude falling more than 15% to around $94 per barrel and Brent crude declining about 13%. The sharp reversal reflected a rapid unwind of supply disruption fears that had driven energy prices higher in recent weeks.
Within equities, gains were broad-based, led by sectors that had been under pressure during the conflict. Semiconductor names including Broadcom (AVGO) and Micron (MU) moved higher, while Meta Platforms (META) led gains among major tech stocks. Travel-related stocks also surged, with Carnival (CCL) and Delta Air Lines (DAL) benefiting from lower fuel cost expectations.
On the other hand, energy stocks declined alongside oil prices, with Exxon Mobil (XOM) and Chevron (CVX) both falling more than 4%. The rotation highlighted a shift in market positioning as geopolitical risks temporarily eased.
📊 Market Wrap
🧠 Analyst Notes
💬 Market Highlights
Apple Bets on Premium Foldable with Samsung Deal
Apple (AAPL) has reportedly signed a three-year exclusive deal with Samsung Display for foldable OLED panels due to limited alternatives. Initial production is targeted at ~3 million units by end-2026 with pricing around $2,325, signaling a cautious but premium entry.
Production Disruptions Weigh on Exxon as Oil Falls
Exxon Mobil (XOM) said Middle East disruptions cut Q1 production by ~6%, with impacts on LNG and refining. While higher energy prices could add ~$2.9B to earnings, this may be offset by $3.5–$4.9B in trading losses, with shares declining alongside oil.
IBM Price Target Cut Ahead of Earnings
IBM (IBM) saw its price target lowered to $290 by Needham due to macro and FX headwinds. Growth is expected at ~4.5%–5.0% in 2026, slightly below consensus, though the company remains relatively defensive given its software mix.
📅 Earnings Watch
Markets are likely to remain sensitive to developments around the ceasefire, with investors watching whether the temporary agreement can evolve into a more lasting resolution.
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