By 03:19 ET (07:19 GMT), Dow futures had risen by 1,076 points, or 2.3%, S&P 500 futures were up 168 points, or 2.5%, and Nasdaq 100 futures had climbed 799 points, or 3.3%. This followed a mostly subdued prior session on Wall Street, when traders were focused on a U.S. deadline for Iran to reopen the Strait of Hormuz or face major military action, a deadline that was ultimately averted.<\/p>\n
The ceasefire was reached at the \u201c11th hour\u201d and mediated by Pakistan. In a social media post, U.S. President Donald Trump said the agreement followed conversations with Pakistani leaders, after Pakistan called on him to withdraw the Tuesday 8 p.m. Eastern time ultimatum. Trump agreed to suspend an attack on Iran for two weeks.<\/p>\n
Iran\u2019s foreign minister, Abbas Araghchi, stated that Tehran would \u201ccease their defensive operation\u201d and enable \u201csafe passage\u201d through the Strait of Hormuz if shipping is coordinated with the Iranian military. Pakistani Prime Minister Shehbaz Sharif invited U.S. and Iranian officials to Islamabad for talks on Friday. Israel, which joined the U.S. in launching an assault on Iran in late February, backed Trump\u2019s decision, according to a statement from Prime Minister Benjamin Netanyahu\u2019s office.<\/p>\n
Oil prices fell sharply following the announcement, although they remained above pre-war levels. By 03:44 ET (07:44 GMT), Brent crude futures were down more than 13% at $94.85 per barrel, while U.S. West Texas Intermediate futures dropped 14.8% to $96.23 per barrel.<\/p>\n
Gold prices advanced to an almost three-week high on Wednesday, supported by a weaker dollar and a reassessment of near-term risks. Spot gold was up 2.4% at $4,818.63 an ounce.<\/p>\n
U.S. government bonds also rallied as markets revived bets that Federal Reserve interest rate cuts could be considered again later this year. Earlier, expectations for rate reductions in 2026 had largely been removed on concerns that a war-driven energy shock would intensify inflation.<\/p>\n
Analysts at Vital Knowledge wrote that equities which had gained from the conflict, including energy firms, commodity chemicals producers, and defense contractors, \u201cwill probably suffer aggressive profit taking\u201d following the ceasefire. They added that consumer discretionary stocks \u201cshould see the biggest rally.\u201d<\/p>\n
Separately, Shell cut its first-quarter gas production outlook and warned of ongoing uncertainty linked to the conflict.<\/p>\n
What caused U.S. stock futures to rise?<\/strong> How did oil prices react to the ceasefire?<\/strong> What was the market impact on gold and bonds?<\/strong> Which sectors are expected to be most affected in equity markets?<\/strong>
U.S. stock futures rose after the U.S. and Iran agreed to a temporary ceasefire and Iran pledged to allow safe tanker passage through the Strait of Hormuz, easing fears of an extended energy supply disruption.<\/p>\n
Brent crude futures fell by more than 13% to $94.85 per barrel, and U.S. West Texas Intermediate futures declined 14.8% to $96.23 per barrel, moving back below $100 but remaining above pre-war levels.<\/p>\n
Gold prices climbed 2.4% to $4,818.63 an ounce, nearing a three-week high, while U.S. government bonds rallied as investors renewed expectations that Federal Reserve rate cuts may be possible later this year.<\/p>\n
According to analysts at Vital Knowledge, energy, commodity chemicals, and defense stocks that benefited from the conflict may see profit taking, while consumer discretionary stocks are expected to experience the strongest rally.<\/p>\n