Big tech stocks rebounded in overnight trading. Micron up 7%; TSMC, Tesla, Broadcom, Meta, AMD up around 4%; Amazon, SMCI, Alphabet up over 3%.
The US and Iran agreed to a two-week ceasefire that’s expected to halt the American-Israeli military campaign in exchange for Tehran reopening the Strait of Hormuz. The deal buys time for the two sides to reach a more permanent agreement to end the war, which has killed thousands of people and sparked a global energy crisis.
US President Donald Trump’s decision represents a dramatic climb-down from a bellicose social media post earlier, in which he warned “a whole civilization will die tonight, never to be brought back again” if Iran didn’t give in. An 11th-hour rush by mediators including Pakistan appeared to spur the proposal for a ceasefire, though finalizing the talks may prove difficult.
Iran’s foreign minister issued a statement noting that safe passage through Hormuz would be possible “via coordination with Iran’s Armed Forces and with due consideration of technical limitations.” That appears to be Tehran giving itself some wiggle room on how fast traffic can get moving again.
Crude oil slumped and US equity-index futures surged after the Trump announcement. West Texas Intermediate tumbled as much as 17% to under $100 a barrel, while equity-index futures for Wall Street gauges jumped more than 2%.
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