S&P 500 Futures Jump as U.S.–Iran Ceasefire Sparks Market Rally

S&P 500 futures leapt 2.7% on Wednesday after the United States and Iran announced a tentative two‑week cease‑fire, raising hopes of reopening the Strait of Hormuz. The surge lifted Dow Jones futures by 2.5% and Nasdaq‑100 contracts by more than 3%, marking the sharpest one‑day gain in weeks.

Traders welcomed the diplomatic breakthrough, which is expected to ease the oil market’s biggest recent shock. Brent crude fell about 14% to just above $94 a barrel and WTI slipped roughly 16% to $95, erasing months of price pressure.

The rally follows a modest gain on Tuesday, when the S&P 500 eked out a rise amid speculation that a Pakistan‑brokered proposal could resolve the standoff. Technical screens on the E‑mini show the index pulling back to its 20‑month exponential moving average, but the geopolitical tailwind has shifted sentiment sharply higher.

Analysts caution that the cease‑fire is conditional on Iran’s cooperation and that any reversal could send futures tumbling again. For now, the market is betting on a brief window of stability to drive equities forward.