Key insights
- Dow, S&P 500, and Nasdaq futures surged following news of a ceasefire in the Iran war, easing concerns about a prolonged energy shock. The positive market reaction reflects pent-up relief after weeks of heightened volatility and defensive positioning. The ceasefire news is a bullish signal for US equities, at least in the short term.
Stock futures surged and oil prices plunged on Wednesday as a two-week ceasefire in the Iran war eased fears of a prolonged energy shock that has rattled markets for more than five weeks.
Futures for the Dow Jones Industrial Average soared 1,267 points, or 2.7%, to 48,079 in premarket trading. S&P 500 futures jumped 185 points, or 2.8%, while Nasdaq Composite futures rose 3.5%.
"Markets have been primed for this moment," Nigel Green, CEO of the financial firm deVere Group, said in an email. "Positioning had become defensive, volatility was elevated and energy prices were reflecting worst-case assumptions."
"A pause, even a temporary one, releases that pressure very quickly," he added.
Source : https://www.cbsnews.com/news/stock-market-dow-oil-prices-iran-ceasefire/