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08.04.202613:37:25UTC+00US Stocks Surge After Iran Ceasefire

US stocks rallied on Wednesday after President Trump agreed to a ceasefire with Iran and refrained from launching the large-scale attacks he had previously threatened. The S&P 500 rose 2.6%, while both the Dow and the Nasdaq 100 climbed more than 3%, with all three indices reaching one-month highs. The ceasefire, set to last for the next two weeks, reportedly includes unimpeded tanker traffic through the Strait of Hormuz. Meanwhile, officials from Oman and other GCC countries opposed the toll system at the chokepoint proposed by Tehran.

These developments drove a sharp decline in crude and refined product prices, easing earlier fears of energy-driven inflation and lending support to government bonds, even amid reports of new strikes on Saudi energy infrastructure. The renewed risk appetite boosted speculative AI-related stocks, with Nvidia, Meta, Tesla, AMD, and Micron jumping between 4% and 10% in pre-market trading. Airlines also advanced on the improved outlook for jet fuel supply, while Delta surged 12% after reporting earnings.

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