US sharemarkets rallied on Wednesday, with all three major indices posting strong gains following news of a two-week ceasefire and suspension of attacks. The S&P 500 rose 2.51% to close at 6,742.98, while the Nasdaq Composite gained 2.8%. The Dow Jones Industrial Average surged more than 1,300 points, or 2.85%, marking its strongest session since April 2025.
The move followed confirmation that the United States would pause attacks on Iran for two weeks after receiving a proposal viewed as a basis for negotiations. The ceasefire is contingent on the reopening of the Strait of Hormuz, with Iran agreeing to allow passage through the waterway during the period.
However, uncertainty around the agreement remains. Iran’s parliamentary speaker, Mohammed Bagher Ghalibaf, accused the United States of violating the ceasefire, citing continued attacks in Lebanon, a drone entering Iranian airspace and the denial of Iran’s right to enrich uranium.
Futures were little changed overnight, with S&P 500 and Nasdaq 100 contracts slipping 0.1% and Dow futures marginally lower, indicating a pause after the sharp rebound.
Technology stocks led gains, with Meta Platforms rising 6.5% after unveiling a new AI model. Amazon and Alphabet added more than 3%, while Nvidia and Apple each gained at least 2%.
Oil prices fell sharply following the ceasefire developments, with crude dropping as much as 17% during the session. West Texas Intermediate traded near US$96.70 a barrel late in New York.
Australian Market Outlook
Australian shares are set to open lower, despite the rally on Wall Street, as investors assess the durability of the ceasefire. S&P/ASX 200 futures were down 22 points, or 0.2%, to 8,967.
There is no major local data scheduled. Offshore, focus will be on US personal income, spending and core PCE inflation data due later in the session.
