Stock markets celebrated President Trump's Iran cease-fire extension with the S&P 500 notching its eighth record close of 2026 and the Nasdaq hitting its fourth record high of the year. The Dow industrials advanced 341 points as investors bet the worst of the U.S.-Iran conflict has passed, even as tensions persist in the Strait of Hormuz.

Market sentiment turned positive despite ongoing geopolitical uncertainty. The S&P 500 rose 1% while the Nasdaq jumped 1.6%. "Risk appetite is back," said Adam Turnquist at LPL Financial, noting the extension "doesn't really bring any clarity, but for now it's good enough for the market." Oil traders remained less optimistic, pushing prices above $100.

Global benchmark crude climbed 3.5% to $101.91 a barrel, settling above $100 for the first time in two weeks. While stocks rally on temporary relief, oil prices reflect continued concerns about potential supply disruptions. The market divergence suggests investors see the immediate geopolitical risk as contained but remain wary of longer-term Middle East instability.