Wall Street Futures Surge Up to 3.4% on US-Iran Ceasefire-Driven Global Rally

Global Markets Surge on Ceasefire Agreement

Wall Street futures rose significantly on Wednesday evening India time, signaling a strong opening for US markets after the United States and Iran agreed to a two-week ceasefire. This development eased concerns over energy supplies through the Strait of Hormuz and led to a decline in crude prices.

At around 6 pm IST, futures linked to the Nasdaq-100 were up 3.41 percent, while futures of the S&P 500 rose 2.63 percent. The Dow Jones Industrial Average futures advanced 2.65 percent. Futures tracking the rate-sensitive Russell 2000 Index jumped 3.7 percent, indicating a positive sentiment among investors.

The ceasefire provided relief to investors after weeks of conflicting signals from US President Donald Trump and Iran, which had prolonged the conflict into a second month. This move is expected to have a positive impact on the global economy, particularly in the energy sector.

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Asian Markets React Positively

In Asian markets, South Korea's Kospi surged 6.87 percent, while Japan's Nikkei 225 index jumped 5.39 percent. China's Shanghai SSE Composite index and Hong Kong's Hang Seng index also recorded strong gains.

European and Indian Markets Follow Suit

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European markets were trading higher, driven by the positive sentiment in the global economy. Back home, equity benchmark indices Sensex and Nifty surged nearly 4 percent, tracking gains in global markets and a fall in crude oil prices following the ceasefire announcement.

The Reserve Bank of India's decision to keep the policy repo rate unchanged, along with broad-based buying and a strengthening rupee against the US dollar, also supported investor sentiment, traders said.

Indian Market Performance

The Sensex jumped 2,946.32 points or 3.95 percent to settle at 77,562.90, marking its strongest single-day rise in five years. During the session, it climbed 3,018.96 points or 4 percent to 77,635.54. The Nifty advanced 873.70 points or 3.78 percent to close at 23,997.35, its best single-session gain in 11 months. It rose 901.5 points or 3.89 percent to 24,025.15 in intra-day trade.