Traders work on the floor of the New York Stock Exchange (NYSE) as the opening bell rings on April 16, 2026.
Timothy A. Clary | AFP | Getty Images
US stocks soared on Friday after Iran declared the Strait of Hormuz “fully open” following the announcement of a ceasefire between Israel and Lebanon.
of Dow Jones Industrial Average It increased by 945 points (2%). of S&P500 rose 1.3% to exceed 7,100 for the first time. Nasdaq Composite rose 1.6%, both hitting new intraday highs. of russell 2000 It also hit a new high. The small-cap index’s most recent increase was 2.2%.
In a post on X published on Friday, Iranian Foreign Minister Seyyed Abbas Araghchi wrote: “With the ceasefire in Lebanon, it is declared that all commercial shipping routes through the Strait of Hormuz will be fully open for the remainder of the ceasefire, in line with the coordinated route already announced by the Ports and Maritime Organization of the Islamic Republic of Iran.”
President Donald Trump said Thursday that Israeli and Lebanese leaders have agreed to a 10-day ceasefire, which went into effect at 5pm ET that same day.
Following Iran’s announcement, concerns about supply disruptions subsided and oil prices plummeted. us west texas intermediate Futures fell 14%, with the international benchmark trading above $80 per barrel. brent Crude oil futures fell 13%, trading above $86 a barrel.
President Trump thanked Iran for opening the strait in a post on Truth Social Friday, but said in another post that the Middle Eastern country had agreed never to close the waterway again. He also said in the post that the U.S. Navy’s blockade of Iranian ports “will continue in full force” until a peace deal is reached with Tehran, adding: “This process should move very quickly as most points have already been negotiated.”
Stocks in key industries vulnerable to the effective closure of the Strait, such as cruise ships and airlines, rebounded. shares of boeing and royal caribbeanFor example, they progressed by 3% and 9%, respectively. In addition, the following Amazon and airbnb has also been moved up.
Anthony Saglimbene, chief market strategist at Ameriprise Financial, said investors are now “moved beyond this conflict.” “I think markets have pushed back on the worst-case scenario. We see a path for the US and Iran to end the conflict and keep the Strait of Hormuz open. As long as that is the most likely path, markets will discount it.”
President Trump said Thursday that the Iran war “should be over pretty quickly.” He made the remarks at an event in Las Vegas, where he said the dispute was “progressing well.” This builds on his comments earlier this week that the war was “very close to being over” and that Iran “very much wants a deal.”
S&P500, 5 days
Stock prices have hit record highs this week due to expectations for a peace agreement, and the averages for all three major stocks have risen steadily over this period. The blue-chip Dow rose 3%, the S&P 500 4% and the Nasdaq 6%.
“The easy part of this rally is probably behind us,” Sagrimbene also said. “Going forward, we need to make sure that not only the earnings meet analyst expectations, but also that the outlook is strong, especially when it comes to technology, especially (‘The Magnificent Seven’).”
