Dow Jones surges on news of US-Iran ceasefire; global stocks rebound, oil falls, gold and dollar weaken.
Global financial markets rallied strongly on Wednesday after progress on a temporary ceasefire agreement between the United States and Iran eased geopolitical concerns and boosted demand for risk assets. However, oil prices fell sharply, while gold and the dollar moved under renewed market pressures.
US stock markets surged on ceasefire news and strong buying in tech stocks.
U.S. stock markets closed strongly higher on Wednesday, April 8, 2569. Following easing investor concerns over the situation in the Middle East, investors returned to actively buying technology stocks.
- Dow Jones Industrial Average Closed at 47,909.92 points, up 1,325.46 points (+2.85%)
- S&P 500 Index Closed at 6,782.81 points, up 165.96 points (+2.51%)
- Nasdaq Composite Index Closed at 22,634.995 points, up 617.146 points (+2.80%)
This surge marks the Dow Jones' best day since April 2025, driven by news that the U.S. president decided to delay an attack on Iran for two weeks to pave the way for negotiations. However, the market remains cautious due to high uncertainty surrounding any potential agreement.
European stock markets surged, boosted by easing concerns about war.
European stock markets closed sharply higher across the board. Hoping that tensions in the Middle East will ease.
- STOXX 600 Index Closed at 613.50 points, up 22.91 points (+3.88%)
- DAX German stock market index Closed at 24,080.63 points, up 1,159.04 points (+5.06%)
- CAC 40 Index of the French stock market Closed at 8,263.87 points, up 355.13 points (+4.49%)
Tourism and industrial stocks led the market rally as investors returned to risk-taking after energy concerns began to ease, despite continued uncertainty in the region.
The UK stock market surged, following the global trend.
The London stock market closed higher on the same day. This aligns with market trends in Europe and the United States.
- FTSE 100 Index UK Stock Market Closed at 10,608.88 points, up 260.09 points (+2.51%)
Buying interest was widespread across several industry sectors, particularly in stocks tied to the global economy, reflecting investors' positive outlook on the economy, provided the situation in the Middle East does not escalate further.
Oil prices plunged sharply after concerns about the Strait of Hormuz eased.
World oil prices have fallen sharply. Following progress on a ceasefire agreement, this could lead to the reopening of a key oil shipping route.
- WTI crude oil price (May delivery) It closed at $94.41 per barrel, down more than 16% (the biggest drop since 2020).
- Brent crude oil price (June delivery) It closed at $94.75 per barrel, down approximately 13%.
Despite the sharp price drop, the market is still watching the progress of the reopening of the Strait of Hormuz, which has not yet returned to normal and could be a risk factor for oil supply in the short term.
Gold prices recovered on a weaker dollar and expectations of an interest rate cut.
Gold prices rose. Following a weaker dollar, investors continue to hold onto safe-haven assets amid uncertainty.
- Spot Gold Price At $4,779.19/ounce, up 1.6%.
- Gold price on the COMEX market (June delivery). Closed at $4,805.90/ounce, up 2.6%.
Analysts believe that a easing of tensions could reduce inflationary pressure and open the door for the Federal Reserve to cut interest rates, a positive factor for gold prices.
The dollar weakened, making investors more risk-averse.
The dollar weakened to its lowest level in a month. Compared to major currencies, investors reduced their holdings of safe-haven assets.
- Euro/Dollar It stood at $1.1698, up 0.9%.
- Pound/Dollar It stood at $1.3428, up 1%.
- Dollar/Yen The exchange rate was 158.12 yen, weakening by almost 1%.
The weakening of the dollar reflects a return of a "risk-on" sentiment in the market. However, investors are still closely watching the progress of negotiations over the next two weeks, which could determine the direction of global markets going forward.
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