US stocks soared Wednesday on investors’ relief over a tenuous Iran ceasefire.
The Dow had its best day since April 2025, while the US crude benchmark posted its largest drop since 2020.
The pattern is now familiar to investors, CNBC wrote: Escalation drives market unease, pressure rises, and de-escalation causes stocks to rebound. With President Donald Trump, “the more extreme the position is, the more likely a compromise is going to occur,” one analyst said.
US monetary policymakers were already expecting interest rate cuts before the ceasefire, Federal Reserve records show, and the truce makes trims more likely this year.
Still, the ripple effects of the war, including energy shortages and price hikes, will “pinch the world for months,” Axios wrote.
