The three major indexes on Wall Street opened higher across the board, buoyed by news of a cease-fire agreement between the United States and Iran.
As of 9:38 a.m. on the 8th (local time), the Dow Jones Industrial Average on the New York Stock Exchange was up 1,379.18 points (2.96%) from the previous session at 47,963.64. The Standard & Poor's (S&P) 500 index rose 166.92 points (2.52%) to 6,783.77, and the Nasdaq composite jumped 705.54 points (3.20%) to 22,723.39.
The market's risk appetite rebounded sharply as the United States and Iran clinched a dramatic cease-fire agreement with just 90 minutes left before the negotiation deadline.
President Trump said on his Truth Social the previous day, "On the condition that Iran agrees to the complete, immediate and safe opening of the Strait of Hormuz, I agree to suspend bombings and attacks against Iran for two weeks."
Iranian Foreign Minister Abbas Araghchi also said Iran accepted Pakistan's cease-fire proposal, adding, "For the next two weeks, it will be possible to pass safely through the Strait of Hormuz in coordination with the Iranian military."
With Israel also agreeing to the cease-fire plan, the United States and Iran are scheduled to begin working-level talks for an end to the war in Islamabad, Pakistan, starting on the 10th.
That day, President Trump, in another Truth Social post, said the two countries were discussing measures to ease tariffs and sanctions, boosting market expectations.
David Morrison, chief market analyst at TradeNation, said, "Whether this initial risk-on move can be sustained is another matter," adding, "If there is clear evidence that shipments through the Strait of Hormuz have resumed and the situation can return to prewar normal, investors will feel more confident."
He added, "Given the complexity of this issue, a two-week cease-fire alone is unlikely to be enough for investors to judge it safe."
By sector, all sectors except energy and utilities were strong. In particular, oil-related stocks came under downward pressure as international oil prices plunged on the back of the cease-fire agreement.
Exxon Mobil and Chevron fell 6.95% and 5.60%, respectively. By contrast, travel and leisure stocks, which benefit from lower oil prices, surged. Delta Air Lines rose 9.47%, and Norwegian Cruise Line climbed 12.36%.
Levi's jumped 12.20% after posting a first-quarter earnings surprise. Levi's first-quarter adjusted earnings per share (EPS) were 42 cents, and revenue was $1.74 billion, beating market expectations of 37 cents and $1.65 billion.
Major European markets also advanced across the board. The Euro Stoxx 50 index was up 5.10% from the previous session at 5,920.70 in transactions. France's CAC 40 and Germany's DAX rose 4.96% and 5.20%, respectively. Britain's FTSE 100 climbed 3.07%.
International oil prices fell. At the same time on the New York Mercantile Exchange, West Texas Intermediate (WTI) for May 2026 delivery was down 17.79% from the previous session at $92.86 per barrel in transactions.