Wall street surges as iran cease-fire proposal ignites global market rally

Wall Street charged higher at Wednesday's open after the United States floated a cease-fire plan to Iran, triggering a relief rally that rippled from Tokyo to New York and shoved Brent crude below $95 a barrel.

The S&P 500 leapt 1% minutes after the opening bell, the Dow Jones Industrial Average vaulted 529 points and the Nasdaq Composite sprinted 1.3% higher. Bond yields slid and energy stocks sagged while airlines soared, sketching the classic playbook of geopolitical de-escalation.

Oil tanks, airlines fly

Brent crude collapsed nearly 5% to $94.80, its steepest drop since the first missiles flew more than three weeks ago. West Texas Intermediate followed, down to $88. With the Strait of Hormuz no longer priced for imminent closure, ConocoPhillips, Exxon and Chevron all dropped between 1% and 2%, while Delta Air Lines climbed 1.8%, United 3.2% and American 2.3%.

The relief wasn't confined to U.S. terminals. London's FTSE 100, Paris's CAC 40 and Shanghai's Composite all rose more than 1%. Tokyo's Nikkei 225 exploded 2.9% higher, its best day since January.

Bonds catch a bid

Treasury yields retreated, easing pressure on mortgage rates that had stalked homebuyers since the conflict flared. The 10-year yield slid to 4.33% from 4.39% Tuesday, still well above the 3.97% printed the day before the first shots. Gold, caught in the crossfire between safe-haven demand and profit-taking, surged 3.5% to $4,558.10 an ounce.

Traders now wait for Tehran's response. A single headline could unwind today's gains as fast as they appeared, but for the first time in weeks the default setting isn't panic.