Nasdaq and Dow Jones set to bounce back after Trump extends ceasefire

• Trump extended the ceasefire after being asked by Pakistani mediators, citing Iran's 'seriously fractured' government, while both nations maintain blockades including Iran's closure of the Strait of Hormuz
• Iran's Revolutionary Guard seized two vessels and reportedly attacked a third in the Strait, while WTI crude oil swung between $88-$92 per barrel over 24 hours
• Major earnings reports expected after the close include Tesla, Lam Research, IBM, and Texas Instruments, with pre-market reports from Boeing, AT&T, Philip Morris International, and others

Market Summary: US Stocks Poised to Rebound on Extended Iran Ceasefire

Market Movement:

US stock futures rose Wednesday morning, with Dow Jones and S&P 500 futures up 0.5% and Nasdaq 100 futures gaining 0.7%. This follows a weaker Tuesday session where all three major indices closed down approximately 0.6% (Dow at 49,149, S&P at 7,064, Nasdaq Composite at 24,259).

Key Catalyst:

President Donald Trump announced an extension of the US-Iran ceasefire after mediators in Pakistan requested additional time for Iran to develop a "unified proposal." Trump cited Iran's government being "seriously fractured" as the reason for the extension. However, both nations maintain their blockades, with the US continuing its blockade and Iran keeping the Strait of Hormuz closed.

Market Implications:

• WTI crude oil remained elevated at $90.50/barrel, fluctuating between $88-$92 over 24 hours
• Iran's Revolutionary Guard seized two vessels in the Strait of Hormuz, with a third reportedly attacked
• UK inflation jumped to 3.3%
• European airlines (Lufthansa, SAS, KLM, Iberia) cancelled flights due to jet fuel shortages

Global Markets:

Asian markets showed modest gains (Japan's Nikkei and China's Shanghai Composite up 0.4%-0.5%), while European markets were mixed, with London's FTSE 100 flat and German, French, and Spanish indices down 0.2%-0.4%.

Earnings Calendar:

Major earnings reports expected include Tesla, Lam Research, IBM, Texas Instruments (after close), and Boeing, AT&T, Philip Morris International, GE Vernova (pre-market).

Analysts suggest Trump's negotiating position appears weakened, with potential for further concessions or escalation.