The stock market today reacts with optimism following reports of a temporary ceasefire between Israel and Iran. Early Tuesday, U.S. stock futures surged. At the same time, oil prices dropped sharply as supply fears eased.
The Dow Jones Industrial Average futures gained 0.7% in pre-market trading. Similarly, S&P 500 futures climbed by 0.8%. Meanwhile, Nasdaq 100 futures led the advance with a 1% jump. This rally followed a tense 12-day conflict that had shaken investor confidence worldwide.
President Trump announced the ceasefire late Monday night. He claimed both Israel and Iran had accepted a U.S.-brokered agreement. “the ceasefire is now in effect, please do not violate it” he posted early tuesday.
As markets opened, relief spread quickly. Investors hoped the pause might evolve into a lasting peace. Fewer threats to Middle East oil routes helped boost optimism. Consequently, the stock market today reacts with strength across major indices.
However, uncertainty returned within hours. Israel accused Iran of launching fresh missiles. Iranian officials denied those claims. Despite these tensions, no immediate retaliation was reported by either side.
Oil prices also reflected the changing mood. Brent crude dropped over 3%, nearing $68 per barrel. West Texas Intermediate declined as well, hovering near $66. Earlier, prices had surged due to fears Iran might block the Strait of Hormuz.
Even so, traders focused more on hopes for stability than on renewed threats. They shifted back into riskier assets, including tech stocks and index futures.
In Washington, eyes also turned to Jerome Powell’s upcoming testimony. The Fed chair will speak before the House Financial Services Committee. Investors expect him to confirm a cautious stance on interest rates. Trump has pressured the Fed to cut rates, but officials want to study the impact of trade policy first.
In summary, the stock market today reacts to reduced geopolitical risk with renewed energy. Although risks remain, investors welcomed the truce. Market gains show confidence in diplomacy and in the possibility of calmer days ahead.
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