Middle East Two-Week Cease-Fire. US Stock Futures Surge, Chip Stocks Lead Pre-Market

TradingKey - The announcement that the U.S., Israel, and Iran have sequentially agreed to a temporary two-week ceasefire has hit the "pause button" on the persistently tense situation in the Middle East. Market concerns over regional military conflict have cooled significantly, prompting a swift and strong rally in global capital markets.

As of 4:15 a.m. ET, futures for the three major U.S. stock indices surged across the board, with S&P 500 futures rising 2.59%, Nasdaq 100 futures up 3.25%, and Dow Jones futures climbing 2.26%.

In pre-market trading, sectors showed clear divergence, with memory chip stocks emerging as the biggest winners. Micron Technology ( MU ), SanDisk ( SNDK) and Seagate Technology ( STX) all gained more than 9%, while Western Digital ( WDC) rose over 8%. Energy stocks that previously benefited from geopolitical conflicts fell sharply under broad pressure, with Occidental Petroleum ( OXY) dropping 8%, and ConocoPhillips ( COP) falling 6%.

The reaching of this ceasefire was quite dramatic, as U.S. President Trump suddenly shifted his hardline stance, announcing an agreement to suspend military operations against Iran for two weeks.

Subsequently, Iran's Supreme National Security Council issued a statement in the early hours of the 8th local time, stating that based on the Supreme Leader's recommendation and the council's approval, it accepted the ceasefire proposal put forward by Pakistan.

However, market analysis firms remain cautiously optimistic about the situation. IG analyst Tony Sycamore noted in a report: "This ceasefire is a positive start and may pave the way for a longer-term de-escalation, but many uncertainties remain to be resolved, and investors should remain vigilant."