US stock indices moved higher on Wednesday after President Donald Trump extended the ceasefire with Iran, even as uncertainty persisted over the durability of the truce.
The Dow Jones Industrial Average rose by more than 417 points, or about 0.85%, while the S&P 500 gained roughly 0.67% and the Nasdaq 100 climbed 0.72%.
The gains reflect renewed investor optimism that geopolitical tensions may eventually ease, despite ongoing risks in the region.
Markets have been volatile in recent sessions, with sentiment swinging between optimism over diplomacy and concerns about escalation. Wednesday’s early gains suggest investors are leaning toward the view that negotiations will ultimately prevail.
Ceasefire extension lifts sentiment despite lingering risks
Trump announced the extension of the ceasefire following a request from Pakistani mediators, citing internal divisions within Iran’s leadership.
“Based on the fact that the Government of Iran is seriously fractured, not unexpectedly so and, upon the request of Field Marshal Asim Munir, and Prime Minister Shehbaz Sharif, of Pakistan, we have been asked to hold our Attack on the Country of Iran until such time as their leaders and representatives can come up with a unified proposal,” the president said in a Truth Social post.
“I have therefore directed our Military to continue the Blockade and, in all other respects, remain ready and able, and will therefore extend the Ceasefire until such time as their proposal is submitted, and discussions are concluded, one way or the other,” he added.
Despite the extension, tensions remain elevated. Iran’s navy reportedly seized two container ships in the Strait of Hormuz, a critical global oil transit route, while the US Navy’s blockade of Iranian ports remains in place.
Negotiations also face uncertainty, with Vice President JD Vance’s planned trip to Pakistan for talks paused due to a lack of commitment from Tehran. Iranian state media indicated that participation in discussions may not proceed, describing talks as a “waste of time.”
Analysts cautioned that while markets are reacting positively to the ceasefire extension, underlying risks have not disappeared.
Oil prices remain near the $100-per-barrel mark, raising concerns about a potential inflation flare-up that could complicate the Federal Reserve’s policy path.
Earnings strength and AI optimism support markets
Beyond geopolitics, corporate earnings have provided a key pillar of support for equities.
A strong start to the earnings season has reassured investors about the resilience of the US economy, particularly consumer demand.
According to Goldman Sachs data, S&P 500 earnings-per-share estimates for 2026 and 2027 have risen by 4% since late January.
Several companies reported upbeat results or updates. Boeing shares rose more than 4.3% after posting a smaller-than-expected quarterly loss, while GE Vernova surged 12.49% after raising its annual revenue forecast. Boston Scientific also posted gains following earnings updates.
Technology and AI-related developments continued to bolster sentiment. Adobe climbed 2.4% after announcing a $25 billion share repurchase program, while Seagate rose 3.5% following an upgrade from Barclays.
Crypto-linked stocks also moved higher, with Coinbase and Strategy gaining 4.65% and 7.4%, respectively, reflecting improved risk appetite.
The post Dow Jones jumps 417 pts as Trump extends Iran ceasefire appeared first on Invezz
