Closing Bell Ceasefire Shock Sends Stocks Higher, Oil Sharply Lower

Key Points

• U.S. equities surged as optimism around a potential Iran ceasefire triggered short‑covering, with the Russell 2000 leading gains while Energy lagged as higher risk appetite weighed on oil.
• Crude prices tumbled sharply after a two‑week Iran ceasefire tied to reopening the Strait of Hormuz sparked a rapid unwinding of the geopolitical risk premium.
• Delta Air Lines reported double‑digit growth in cash sales and broad‑based demand strength, signaling resilient travel trends even as the company navigates elevated fuel costs.

Markets moved sharply higher as optimism around a ceasefire with Iran fueled speculation and short‑covering. The S&P 500 (SPX) rose 2.51% and the Nasdaq‑100 (NDX) gained 2.90%, while the Russell 2000 (RUT) outperformed, closing up 2.97%. Industrials, Communication Services, and Materials led the market higher, while Energy was the only sector to finish in the red.

Crude Falls Below $100 After Iran Ceasefire Eases Hormuz Risk

Oil and energy markets saw a sharp reversal after Donald Trump announced a two‑week ceasefire agreement with Iran tied to reopening the Strait of Hormuz, triggering a rapid unwinding of the war premium. Brent crude fell below $100, with Brent down nearly 11.8% and WTI off more than 14%. Iran agreed to allow safe transit through Hormuz—potentially freeing up 10–13 million bpd of constrained crude and product flows—but the respite is conditional and fragile.

Delta Sees Double‑Digit Demand Growth as Operations Remain Steady

Delta Air Lines (DAL) signaled strengthening demand and operational stability, with CEO Ed Bastian noting that cash sales, seen as the clearest indicator of demand. are up double digits over the past month, with strength visible across the booking curve, geographies, and products. Despite a high-fuel price environment, management emphasized a focus on controllable factors, including reliable operations, margin protection, and cash flow. The company also said it has no near‑term concerns about jet fuel availability and confirmed that hiring plans remain unchanged, with frontline staffing for the summer season largely complete.

Market Events for Tomorrow (ET)

8:30 AM ET

• PCE Price Index
• Final GDP
• Initial Jobless Claims
• Personal Income
• Personal Spending

10:00 AM ET

• Final Wholesale Inventories

10:30 AM ET

• Natural Gas Storage

1:00 PM ET

• 30‑Year Bond Auction

Notable Earnings for Tomorrow

• A.M: BB, NEOG, SMPL
• P.M: N/A

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