Hormuz Opens, Wall Street Rises and Risk-On Resumes
US stocks rallied on Friday after Iran declared the Strait of Hormuz “fully open” for the remainder of the ceasefire period, following the announcement of a 10-day ceasefire between Israel and Lebanon. The Dow rose 702 points (+1.5%), the S&P 500 gained 0.8%, and the Nasdaq rose 1%.
Iranian Foreign Minister Seyed Abbas Araghchi wrote in X that, in line with the ceasefire in Lebanon, the passage of commercial vessels through Hormuz was declared fully open for the duration of the ceasefire period, through a coordinated route announced by Iranian maritime authorities. Market sentiment was also supported by President Donald Trump's statement the previous day that the Iran war “should be over soon” and the conflict “is going well,” reinforcing the narrative that de-escalation was imminent.
This rally extended the risk-on trend of recent days, when hopes of a peace deal pushed major indexes near record levels. On a weekly basis, the Dow added about 1.4%, while the S&P 500 and Nasdaq rose 3.3% and 5.2%, respectively, reflecting a rapid shift away from geopolitical risk premiums toward optimism about recovering energy flows and regional stabilization. (Arl)
Source: Newsmaker.id
