-- US equity indexes jumped while crude oil futures sank as a conditional two-week ceasefire agreement with Iran boosted investor confidence and eased geopolitical tensions.
The Nasdaq Composite surged 2.9% to 22,654.4, the S&P 500 soared 2.4% to 6,775.6, and the Dow Jones Industrial Average catapulted 2.6% to 47,781.1. All sectors except energy rose intraday. Industrials, consumer discretionary, and technology led the gainers.
Pakistan's prime minister invited delegations from Iran and the US to Islamabad for talks on Friday, CNN reported. Trump's special envoy Steve Witkoff, son-in-law Jared Kushner, and Vice President JD Vance are expected to attend to reach a final settlement with Tehran.
Meanwhile, President Donald Trump suggested the US may be involved in securing the critical Strait of Hormuz waterway in a "joint venture" with Iran, the news report said. Tehran said its military will coordinate the passage of ships.
"With the Iran ceasefire news overnight this is a major positive development for overall markets with a risk-on appetite now set to return to the market," Wedbush Securities analysts, including Dan Ives, said in a note. "The nervous geopolitical backdrop over the past few months has created an oversold tech environment for Mag 7, software names, and many tech winners in the AI Revolution."
West Texas Intermediate crude oil futures sank 16% to $94.63, and Brent crude futures plunged 15% to $94.42.
The ceasefire announced overnight has taken the panic premium out of oil, but not the full risk premium, Rystad Energy said in a research note. "Prices are not snapping back to pre-war levels due to the scale of disruption and backlog-clearing mechanisms that will take some time to normalize."
US Treasury yields fell, with the 10-year down 6.8 basis points to 4.28% and the two-year rate lower by 6.4 basis points to 3.77%.
In precious metals, gold futures jumped 2.1% to $4,782.1 and silver futures advanced 5.2% to $75.69.
Airline and cruise operator stocks surged following the ceasefire deal. Carnival (CCL) soared 10%, the top gainer on the S&P 500. United Airlines (UAL) advanced 10%, among the biggest outperformers on the index.
On Nasdaq, Lam Research (LRCX) was among the top gainers, up 9%, while Diamondback Energy (FANG) was the steepest decliner, down 5.9%. The worst performer on the Dow was Chevron (CVX), with shares slumping 5.7%.
In economic news, the minutes of the March 17-18 Federal Open Market Committee meeting are scheduled at 2:00 pm ET.