US stock-index futures advanced Wednesday as traders absorbed President Donald Trump's decision to extend an indefinite ceasefire with Iran, easing Middle East geopolitical tensions that had weighed on markets. The pre-market rally reflected investor relief that the temporary truce would continue, removing immediate threat of escalation in a region critical to global oil supplies and trade routes.

Middle East instability traditionally rattles markets through energy price volatility and supply chain disruption fears. Traders had been monitoring the situation closely following initial ceasefire talks, with the extended pause providing breathing room for risk assets. The ceasefire extension signals diplomatic progress, allowing markets to shift focus back to domestic economic indicators and corporate earnings rather than geopolitical flashpoints.

The futures advance suggested a positive open for US equities, building on recent sessions that had shown resilience despite international uncertainty. Market participants noted the ceasefire extension reduces a key tail risk that had been priced into recent trading, potentially opening room for further gains if stability continues.