S&P 500 Index futures jumped 2.8% as of 7:50 a.m. in New York following a temporary ceasefire agreement between the US and Iran. The deal allows ships to navigate through the strategically vital Strait of Hormuz, a major global oil transit route. This development sent energy stocks higher, with Chevron, Exxon, and Delta Air Lines among the top premarket gainers.

The ceasefire comes amid heightened tensions in the Middle East, where the Strait of Hormuz handles roughly 20% of global oil shipments. Market participants had been bracing for potential supply disruptions that could have driven crude prices sharply higher. The agreement removes this immediate risk, allowing traders to refocus on economic data and corporate earnings.

Investors also bid up shares of consumer and technology companies, with Meta Platforms and Levi Strauss showing strong premarket gains. The broad-based rally suggests markets are breathing a sigh of relief as one major geopolitical risk fades. With the immediate threat to oil supplies diminished, attention now turns to upcoming inflation data and the Federal Reserve's next policy moves.