Stock Futures Jump on US, Iran Agreement for Two-Week Ceasefire

1vrrsols4{s4jx(xas5r3(n7_media_dl_1.png S&P, BloombergArticle content(Bloomberg) — US stock index futures rallied after President Donald Trump’s announcement of a two-week ceasefire in the Iran war triggered relief across markets.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentS&P 500 contracts rose 2.5% as of 3:04 a.m. in New York, while those on the Nasdaq 100 climbed 3.2%. Brent crude fell as much as 16% before trading around $94 a barrel, while West Texas Intermediate dropped to around $96.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentTrump announced the agreement on social media hours after Pakistan, a mediator in talks, implored the US leader to back off his deadline for attacks on Iranian infrastructure. Israel has also agreed to the ceasefire, according to a White House official.

Iranian Foreign Minister Abbas Araghchi said in a statement that safe passage through the Strait of Hormuz will be possible for two weeks.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentInvestors are trying to gauge whether this marks just a temporary halt of hostilities or a longer term truce. An easing in oil prices would help lift sentiment given concerns over the potential for higher inflation and slower growth caused by rising energy costs.Article content“Near term, this creates the conditions for a relief rally,” said Mathieu Racheter, head of equity strategy at Julius Baer. “I expect cyclicals and stocks and sectors sensitive to rates to lead the rally overall. Also, the broader rotation story from US into non-US equities should now reassert itself again.” Article contentThe S&P 500 Index dropped more than 5% in March on the war, while the Stoxx Europe 600 Index tumbled 8%. Both have rebounded somewhat from their recent lows as optimism grew for a deal to end the conflict.Article contentMarkets have seesawed on daily headlines since the war began in late February, as investors reacted to attacks and threats followed by talk of negotiations. While much remains uncertain, the deal buys time for the two sides to reach an agreement to end the six-week-old war.Article content“This may prove to be the off-ramp to the conflict that markets were looking for,” said Kerry Craig, a global market strategist at JPMorgan Asset Management. “But these agreements can be fragile, so it’s too soon to call the all clear.”Article content—With assistance from Elena Popina and Winnie Hsu.Article contentTrending Doritos at US$7 a bag ended up costing PepsiCo billions Retail & Marketing Canada's accountant shortage is starting to add up despite quieter tax season Personal Finance Canadian pension plans are so healthy that employers are taking a contribution 'holiday,' says Mercer Retirement William Watson: Open the highway, you crazy New Brunswickers! FP Comment Microsoft vows data centres will not hike Canadians' water and electricity bills Innovation Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Doritos at US$7 a bag ended up costing PepsiCo billions Retail & Marketing Canada's accountant shortage is starting to add up despite quieter tax season Personal Finance Canadian pension plans are so healthy that employers are taking a contribution 'holiday,' says Mercer Retirement William Watson: Open the highway, you crazy New Brunswickers! FP Comment Microsoft vows data centres will not hike Canadians' water and electricity bills Innovation