U.S. stocks maintained their upward trajectory during the early trading session on the evening of April 8, Beijing time. Crude oil futures prices experienced a sharp decline. The improvement in risk appetite, driven by a two-week cease-fire agreement reached between the United States and Iran, prompted traders to actively purchase stocks.

The Dow Jones Industrial Average rose by 1,316.64 points, or 2.83 percent, to close at 47,901.10. The Nasdaq Composite Index increased by 624.57 points, or 2.84 percent, finishing at 22,642.42. The S&P 500 index advanced by 156.36 points, or 2.36 percent, settling at 6,773.21. On the 7th, the U.S. President announced an agreement to suspend bombing and attacks on Iran for two weeks, conditional upon Iran agreeing to open the Strait of Hormuz "completely, immediately, and safely." He also stated that "this will be a two-way cease-fire." At approximately 6:30 PM Eastern Time on April 7, the announcement was made via social media. This occurred less than two hours before a previously set "deadline" for airstrikes on Iranian bridges and power plants, which was scheduled for 8:00 PM ET on Tuesday. The President mentioned that he had spoken with the Prime Minister and the Army Chief of Staff of Pakistan, who requested a postponement of the U.S. airstrikes on Iran. The decision was attributed to the U.S. having "achieved and exceeded" all military objectives and making significant progress toward a final agreement concerning long-term peace and stability in the Middle East with Iran. It was revealed that the U.S. had received a 10-point proposal from Iran, which was considered a viable basis for negotiations. Consensus had reportedly been reached on the majority of previously disputed issues between the two sides, and the two-week period would allow for the finalization and completion of the agreement. On March 21, an ultimatum was issued to Iran, demanding the opening of the Strait of Hormuz by a specific deadline. This deadline was extended three times, from an initial "48-hour limit" to 8:00 PM ET on April 6, and subsequently postponed to 8:00 PM ET on April 7. Earlier on April 7, a social media post threatened Iran, stating, "Tonight, the entire civilization will perish. I do not wish for this to happen, but it might." Following the cease-fire announcement, West Texas Intermediate crude futures plummeted by over 16 percent, to $94.41 per barrel. The international benchmark Brent crude contract for June delivery fell by more than 14 percent, to $93.67 per barrel. According to a statement from the Iranian Foreign Minister, Iran's Supreme National Security Council agreed to reopen the Strait of Hormuz for two weeks, conditional upon the cessation of all attack operations. The statement indicated that transit would need to be coordinated with Iranian armed forces. Media reports also suggested that Israel had agreed to the cease-fire. Jay Woods, Chief Market Strategist at Freedom Capital Markets, commented, "The announcement of a temporary de-escalation in the Iran conflict is not entirely surprising. The market has become more adept at anticipating the next moves. The current concern is whether this all-too-familiar 'two-week' timeframe will lead to a resolution." On Wednesday morning, a post stated that the U.S. would cooperate with Iran to remove nuclear materials from the country and that the two nations were discussing relief on import tariffs and sanctions for Iran. Stocks, which have been under pressure this year, generally rose. Large-cap stocks such as Nvidia and Amazon saw gains exceeding 3 percent and 4 percent, respectively. Tesla's stock price increased by over 4 percent. JPMorgan Chase and Boeing shares rose more than 2 percent and 3 percent, respectively. Conversely, energy stocks, which had surged since the conflict began, mostly declined. Exxon Mobil's stock fell over 6 percent, while Chevron dropped more than 4 percent. Investors experienced a mixed trading session on Tuesday, with the S&P 500 edging up just 0.08 percent as traders bet on a potential cease-fire. The Nasdaq Composite recorded a minor increase of 0.10 percent on Tuesday, while the Dow Jones declined by 85.42 points. Stocks moved off their session lows in the final hour of Tuesday's trading after the Prime Minister of Pakistan requested a two-week extension to the deadline for attacking Iranian bridges and power plants. A post on social media platform X also asked Tehran to open the Strait of Hormuz for two weeks "as a gesture of goodwill." The initial deadline for Iran to reach an agreement with the U.S. to reopen the critical waterway was set for 8:00 PM ET on Tuesday. Threats were made to attack Iranian power plants and bridges, and even destroy its "entire civilization," if conditions were not met. At Tuesday's close, the S&P 500 remained 5.5 percent below the record high set earlier in the year. The benchmark index had neared a 10 percent correction level in March before rebounding on market optimism that a path would be found to mitigate the market-disrupting effects of the conflict. Due to the closure of the Strait of Hormuz, crude oil prices had surged more than 70 percent this year, pushing the national average gasoline price in the U.S., as tracked by the American Automobile Association, above $4 per gallon for the first time since 2022.