U.S. Stock Futures Surge Following Temporary Ceasefire with Iran

Traders were busy on the New York Stock Exchange floor, particularly when the opening bell rang on April 7, 2026. The atmosphere shifted dramatically after President Donald Trump declared a two-week pause in military actions against Iran, responding to an 8 p.m. ET deadline. This halt comes after five weeks of conflict that had disrupted a vital waterway for global energy supplies, causing stock prices to drop significantly.

Futures tied to the Dow Jones Industrial Average jumped by 967 points, reflecting a rise of 2.1%. Meanwhile, S&P 500 futures also increased by 2.1%, and Nasdaq 100 futures rose by 2.3%. In contrast, West Texas Intermediate Crude Oil Futures fell about 18% to under $93 a barrel following President Trump’s announcement.

Trump stated that negotiations are on the table, mentioning a “10-point proposal” from Iran that could pave the way for future discussions. He emphasized that the ceasefire depends on Iran’s agreement to reopen the Strait of Hormuz.

According to Iran’s foreign minister, the Supreme National Security Council has also consented to reopen this crucial waterway for the two-week period, provided all hostilities cease. Reports indicate that Israel has similarly agreed to stop attacks.

“It’s not too surprising that we heard about this ceasefire,” noted Jay Woods, chief market strategist at Freedom Capital Markets. “Markets have really gotten better at predicting Trump’s moves. But there’s this nagging concern—will this ‘two-week’ timeline actually lead to any meaningful resolution?”

During regular trading hours on Tuesday, the S&P 500 saw a slight gain of 0.08%, as traders leaned towards the expectation of a ceasefire. The Nasdaq Composite improved by 0.10%, but the Dow decreased by 85.42 points.

Some tension arose when Pakistani Prime Minister Shehbaz Sharif appealed to Trump to extend the deadline for attacking Iranian infrastructure by another two weeks. In a social media post, Sharif also urged Iran to reopen the Strait of Hormuz as a sign of goodwill.

Previously, Trump had issued a stern warning, setting an 8 p.m. ET deadline for an agreement with Iran to reopen the vital waterway, declaring potential attacks aimed at Iranian power plants and bridges if the demands weren’t met.

By the end of trading on Tuesday, the S&P 500 had slid 5.5% from its earlier highs this year, driven by ongoing concerns about the impact of the conflict on both U.S. and global economies. Last month, the index nearly hit a 10% correction but rebounded on hopes that Trump might alleviate some of the market’s distress.

The closure of the Strait of Hormuz contributed to a staggering 70% increase in oil prices this year, pushing average gasoline prices in the U.S. over $4 a gallon for the first time since 2022, according to AAA.

Delta Airlines is anticipated to report its earnings before the market opens on Wednesday.