US Stock Market Rallies 2% Following Trump's Decision to Halt Iran Strikes, Brent Crude Falls Below $100 Mark

US Stock Market Gains 2.6-2.7% in Pre-Market Trade as Tensions Ease in Middle East

Key Points:

• Dow Jones Industrial Average, S&P 500, and Nasdaq futures surged 2.6%, 2.7%, and 2.5%, respectively, in pre-market trade.
• US President Donald Trump announced a five-day halt on military strikes against Iranian power plants and energy infrastructure.
• Tensions in the Middle East have eased, with a decrease in crude oil prices and a rebound in precious metals.

Market Reaction:

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• Brent crude futures fell 14.3% to $96 per barrel, erasing concerns over prolonged energy supply disruptions.
• Comex gold rebounded $314 per troy ounce to $4,406, while Comex silver recovered $7.10 per troy ounce to $68.30.
• The US stock market is expected to open with a sharp gap-up in Monday's session, March 23.

Economic Implications:

• Elevated crude prices have led global central banks to revise their inflation forecasts upward and pause rate cuts.
• The US Federal Reserve, Bank of Japan, and Bank of England have signalled policy caution amid rising inflation risks.
• Markets have scaled back expectations of US Federal Reserve rate cuts in 2026, compared to earlier projections of up to three rate cuts at the start of the year.