US stocks soared after President Trump announced a two-week ceasefire with Iran, with beaten-down tech names leading the rally.
Meta surged on the Muse Spark announcement. Nvidia gained 6%, TSMC jumped 6%, ASML popped 9%, Intel gained 11%, and Micron added nearly 8%. Tech stocks had been battered throughout Q1 2026 by Iran war concerns and AI spending fears.
The rally was the largest single-day gain for the Nasdaq Composite since March 2020, reflecting the depth of pessimism that had built up during the geopolitical crisis.
Analysts caution that the ceasefire is temporary and that the underlying tensions remain unresolved. However, the market reaction suggests that much of the risk premium had already been priced in.
The broader tech sector gained $1.8 trillion in market capitalisation in a single session. Semiconductor stocks led the recovery, driven by expectations that AI infrastructure spending — temporarily disrupted by conflict-related supply chain concerns — will resume its upward trajectory.