US equity futures surged to their highest in one month on Wednesday after President Trump agreed to a ceasefire with Iran and refrained from following through on threats to deliver large-scale attacks on Iranian infrastructure. Contracts tracking the S&P 500 and the Dow gained nearly 3%, while those for the Nasdaq 100 jumped over 3.5%. The ceasefire was agreed for the next two weeks and reportedly included free traffic for tankers through the Strait of Hormuz. Additionally, officials from Oman and other GCC countries opposed the toll system in the chokepoint campaigned by Tehran. The developments triggered a plunge in oil and product prices, easing previous concerns of energy-driven inflation and supporting government bonds. The rekindle in risk sentiment supported speculative AI stocks, with Nvidia, Tesla, AMD, and Micron surging between 4% and 10% pre-market. Airlines also jumped on the improved outlook of jet fuel supply, and Delta soared 12% after posting earnings.
