Stocks to Buy As the War Pauses

• The S&P 500 moved back above its 200-day moving average, a key technical threshold that distinguishes bull from bear market territory, potentially signaling sustained upward momentum
• Oil prices crashed with Brent crude falling from $110 to $95 in its biggest single-day drop since COVID, while Treasury yields declined as markets priced in potential Fed rate cuts
• Technology analyst Luke Lango advised deploying capital into AI and high-growth stocks specifically, arguing the ceasefire marks the beginning of the war's end while cautioning the broader economy will continue struggling

Market Summary: U.S.-Iran Ceasefire Sparks Major Rally

Key Market Movements:

U.S. markets surged Wednesday following a last-minute ceasefire agreement between the U.S. and Iran. The Dow jumped 1,200 points, the S&P 500 rose 2.5%, and the Nasdaq climbed over 3%. Conversely, oil prices plunged 16%, with Brent crude falling from $110 to $95—marking its largest single-day drop since COVID. West Texas Intermediate also declined approximately 16%.

Critical Development:

With roughly 90 minutes before President Trump's 8 p.m. deadline, Pakistan brokered a two-week ceasefire. Trump had previously threatened Iran to reopen the Strait of Hormuz after U.S. forces struck Kharg Island military targets. Pakistan's Prime Minister Sharif and Field Marshal Munir successfully negotiated the suspension, with diplomatic talks scheduled to begin Friday in Islamabad.

Technical Significance:

The S&P 500 reclaimed its critical 200-day moving average—a key technical indicator separating bull from bear market behavior. This recovery on high volume and strong fundamental catalyst suggests potential for sustained upward momentum.

Investment Implications:

Technology expert Luke Lango views this as the end of the conflict and recommends deploying capital into AI and high-growth stocks specifically, not broader market holdings. He argues the "fear premium" will exit these sectors while the rest of the economy continues struggling. Treasury yields are falling as investors anticipate potential Federal Reserve rate cuts due to lower energy costs.

Cautionary Notes:

Iran's statement included caveats, emphasizing "hands remain upon the trigger." The Strait of Hormuz reopening involves "technical limitations" requiring coordination with Iranian forces. Early missile alerts in Israel and UAE highlight ongoing regional tensions despite the ceasefire announcement.