Nasdaq to lead strong Wall Street rebound after Iran ceasefire deal

• The ceasefire is contingent on Iran's complete reopening of the Strait of Hormuz, with shipping already resuming through the critical route for global oil and gas flows
• Oil prices plummeted with WTI crude down over 17% and Brent crude declining over 15%, while metals prices including gold, silver and copper climbed
• Growth-focused tech stocks are expected to lead gains as investors view recent pullbacks as creating attractive valuations, with small and mid-cap names also benefiting from reduced geopolitical risk

Market Summary: Wall Street Set for Strong Rally on Iran Ceasefire

Key Development:

US stock futures surged Wednesday morning after President Trump announced a two-week ceasefire deal with Iran, just hours before his 8pm EST deadline on April 8, 2026. The agreement is conditional on Iran's complete reopening of the Strait of Hormuz.

Market Response:

• Nasdaq futures: +3.5%
• Dow Jones futures: +2.8%
• S&P 500 futures: +2.8%
• Technology and small/mid-cap stocks expected to lead gains

Commodities Impact:

• WTI crude oil: -17% to $93.25/barrel
• Brent crude: -15%
• Gold, silver, and copper: all climbing
• Shipping has resumed through the Strait of Hormuz

Global Markets Rally:

• Japan's Nikkei: +5.4%
• India's Sensex: +4.0%
• Germany's DAX: +5.3%
• UK's FTSE 100: +3.1%

Background:

In the previous session, major US indices showed minimal movement (±0.2%) on tentative diplomatic hopes. Iran's foreign minister confirmed forces would "cease defensive operations" if attacks stop, enabling safe passage through the Strait for two weeks. Trump indicated Tehran submitted a 10-point proposal providing a "workable basis" for negotiating a lasting peace agreement.

Analyst Perspective:

Market analyst Kenny Polcari characterized Trump's approach as "maximum pressure and maximum drama," noting the ceasefire represents "only a first step" with more negotiations ahead. He highlighted that technology stocks had become oversold during recent pullbacks, pushing valuations to more attractive levels, positioning them for strong recovery gains as geopolitical risk subsides.