Ceasefire Sparks Optimism: U.S. Stocks Rise Amid Middle East Tensions

U.S. stock futures surged as President Trump declared a ceasefire between Israel and Iran, relieving investors concerned about global instability and inflation. The move follows recent military exchanges between the U.S. and Iran. Stocks, oil prices, and economic indicators reacted positively, while market focus shifts to upcoming Federal Reserve announcements.

U.S. stock index futures climbed on Tuesday following President Donald Trump's announcement of a ceasefire between Israel and Iran. This development offered some respite to investors after 12 days of conflict in the Middle East put global risk assets under pressure and fueled worries about inflation.

Oil prices touched two-week lows as fears of supply disruptions waned, causing drops in U.S. energy stocks during premarket trading. Chevron and Exxon each saw declines, and defense contractors Lockheed Martin and RTX Corp also posted losses.

The ceasefire declaration marked a dramatic shift after the U.S. targeted Iranian nuclear sites over the weekend, leading to retaliatory strikes by Iran. Despite allegations of ceasefire violations by Israel's defense minister, market optimism persisted, boosting major indices and fueling gains in tech and crypto stocks.

(With inputs from agencies.)