US equities surged sharply on Wednesday as investor sentiment improved following President Donald Trump’s announcement of a temporary two-week ceasefire with Iran. The development eased fears of a prolonged conflict in the Middle East, triggering a broad rally across major indexes and sectors while simultaneously pushing oil prices lower.

The Dow Jones Industrial Average climbed 1,109 points to close at 47,693.76, driven by gains in technology, industrial, and financial stocks. Companies such as Intel, Home Depot, and Caterpillar contributed significantly to the upward momentum, reflecting renewed confidence among investors. The S&P 500 rose 2.21%, supported by widespread gains across both growth and cyclical sectors, although energy stocks lagged due to declining crude prices.

The Nasdaq Composite advanced 2.48%, led by strong performance in semiconductor and technology stocks, signaling optimism around artificial intelligence and chip demand. The NYSE Composite also gained 1.79%, highlighting strength in large-cap industrial and financial shares.

Market sentiment shifted notably after the ceasefire announcement, as earlier concerns about escalating tensions had driven oil prices higher and weighed on equities. Investors responded positively to the prospect of reduced geopolitical risk and the potential reopening of the Strait of Hormuz, a critical shipping route responsible for roughly 20% of global oil supply.

Oil prices fell sharply in response, easing inflation concerns. West Texas Intermediate crude declined 17% to $93.42 per barrel, while Brent crude dropped 16% to $91.65 per barrel. The decline in energy costs provided additional support to equities, reinforcing expectations of reduced inflationary pressure and improved economic stability.

Overall, the ceasefire announcement acted as a key catalyst for markets, with investors viewing it as a step toward stabilizing global energy flows and reducing geopolitical uncertainty.