Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., April 8, 2026.
Brendan McDermid | Reuters
Stocks soared Wednesday after President Donald Trump suspended attacks on Iran for two weeks, pausing a five-week conflict that closed a crucial waterway for global energy supplies.
The Dow Jones Industrial Average ripped 1,200 points higher, or 2.6%. The S&P 500 popped 2.4%, and the Nasdaq Composite surged 2.8%.
West Texas Intermediate crude futures tumbled more than 17% to $93.42 a barrel following Trump’s declaration. International benchmark Brent for June delivery lost more than 16% to $91.65 per barrel.
“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 said 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.
“It wasn’t much of a surprise that there was an announced reprieve in the Iranian conflict. The market has gotten much better at sniffing out” Trump’s next move, said Jay Woods, chief market strategist for Freedom Capital Markets. “The concern now is if this all too familiar ‘two-week’ timeframe is going to lead to a resolution.”
S&P 500, 1-day
Stocks got another boost after Trump posted Wednesday that the U.S. will work with Iran to remove nuclear material from the country and that the two nations are discussing tariff and sanctions relief.
The first vessels passed through the Strait of Hormuz, according to ship-tracking service MarineTraffic on Wednesday. However, industry experts say overall traffic hasn’t picked up meaningfully from levels seen during the war that began in late February.
The rally was led by stocks that have come under the most pressure since the start of the conflict. Semiconductor makers vulnerable to supply chain disruptions climbed, with the VanEck Semiconductor ETF (SMH) jumping nearly 5%. Broadcom was higher by 4%. Micron Technology gained 7%.
International markets that are more reliant on energy imports outperformed the U.S., with the iShares MSCI Emerging Markets ETF up roughly 5%. South Korea stocks surged 8%. Small caps, which have greater cyclical exposure, also climbed nearly 3%.
On the other hand, energy stocks that have surged since the start of the conflict faltered, with shares of Exxon Mobil and Chevron down more than 5%, each.
“Nothing goes up in a straight line, but I think we’ve made a strong base here,” said Stephen Tuckwood, director of investments at Modern Wealth Management. “A lot of the market has sold off pretty heavily since the beginning of the war, so [investors are] seeing some reasonable valuations again, and that’s kind of had a tailwind here.”
— With reporting by Fred Imbert