Daniel Ives, the managing director at Wedbush Securities and a Wall Street veteran, labeled the reported ceasefire between Iran and Israel as “the most bullish outcome” for U.S. markets.
What Happened: In an X post, Dan Ives predicted a rally in U.S. stocks once trading resumes Tuesday, citing historical trends where geopolitical stability has triggered a 2-3% market uptick within a week.
The futures of the Dow Jones, S&P 500, and the Nasdaq 100 indices were trading higher as markets digest these developments. Ives's bullish call remains a focal point, though the unfolding conflict may test its validity.
Ives' optimism hinges on the belief that, despite potential fragility, the ceasefire will pave the way for negotiations, a positive signal for investors. However, this rosy outlook faces immediate challenges.
Why It Matters: Just hours after U.S. President Donald Trump announced the ceasefire, Israel said that Iran violated the U.S.-brokered ceasefire on Tuesday.
After detecting missile launches from Iranian territory, the Israeli Defense Minister, Israel Katz, ordered "high-intensity strikes against regime targets in the heart of Tehran."
This came hours after President Trump posted on Truth Social, declaring "complete and total ceasefire.”
Reuters reported that the Israeli military would respond to "Iran's blatant violation of the ceasefire declared by the President of the United States through the launch of missiles toward Israel.” However, Iranian state media denied reports of any missile attack, according to state television.
Meanwhile, the Foreign Minister of Iran, Syed Abbas Araghchi, refuted claims of a ceasefire, saying that there was "no agreement" for cessation of military operations, in a post on X.
Price Action: The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, were higher in premarket on Tuesday. The SPY was up 0.81% at $605.03, while the QQQ advanced 1.07% to $537.35, according to Benzinga Pro data.
Read Next:
Photo: emin kuliyev/Shutterstock
