Wall Street futures pointed to a sharp rebound on Wednesday, with investors cheering a breakthrough in geopolitical tensions after a ceasefire between the United States and Iran.
Futures linked to the Dow Jones Industrial Average surged nearly 1,200 points, indicating a strong opening for US equities. Meanwhile, Nasdaq-100 futures jumped around 3.5%, signalling a robust comeback in technology stocks, which had borne the brunt of recent volatility.
Also Read:
The broad-based S&P 500 futures also rallied sharply, underscoring a broad risk-on sentiment across sectors.
The rally follows US President Donald Trump announcing a two-week ceasefire with Iran, with talks expected to follow. The development has raised hopes of de-escalation in the Middle East and the reopening of the Strait of Hormuz—a key global oil supply route.
Markets globally reacted swiftly to the truce, with crude oil prices tumbling nearly 16% to below $100 per barrel. This eased inflation concerns and boosted equity markets.
The rebound marks a sharp reversal from last week's turmoil, when escalating conflict had rattled global markets and pushed oil prices sharply higher. Investors are now rotating back into equities, particularly growth and technology stocks, on expectations of stabilising energy prices and improved macro outlook.
Also Read:
Despite the optimism, analysts caution that markets remain sensitive to geopolitical developments. The durability of the rally will depend on whether the ceasefire holds and translates into sustained diplomatic progress.
For now, however, Wall Street appears set for a powerful relief rally, with bulls firmly back in control as risk appetite returns.
The US-Iran war, notably, broke out on Feb. 28. Subsequently, March witnessed the biggest monthly stock market loss since 2022. The S&P 500 and Dow Jones Industrial Average both fell over 5%, while Nasdaq Composite dropped nearly 4.8%.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.