US Stocks Rally on US-Iran Ceasefire Deal

U.S. stocks surged on Wednesday following a last-minute two-week ceasefire agreement between the United States and Iran, marking the Dow Jones Industrial Average's largest single-day gain in nearly a year, before building modest gains on Thursday amid lingering doubts about the truce's durability.

The deal, brokered by Pakistan, suspended hostilities in a conflict that began with joint U.S.-Israeli strikes on Iran on February 28. That escalation had disrupted global oil supplies, spiked energy prices and fueled inflation fears, sending markets into a tailspin. On Wednesday, the Dow climbed 1,326 points, or 2.85 percent, to close at 47,910.79. The S&P 500 rose 2.51 percent to 6,782.83, surpassing its 200-day moving average for the first time since mid-March, while the Nasdaq Composite gained 2.80 percent to 22,635.00. The CBOE Volatility Index, a measure of investor anxiety, plunged 18 percent to its lowest level since the war started.

The rally reflected broad relief across sectors battered by the conflict. Airlines and travel stocks led the rebound, with Delta Air Lines up 3.8 percent, Southwest Airlines advancing 6.7 percent and United Airlines rising 7.9 percent, despite...