Right now, why are U.S. stocks surging in the pre-market?
I believe everyone was already shocked during the day and had prepared for the US stock market to continue being scary at night!
But something incredible happened: US stock futures are surging pre-market right now!
Why the surge? It's all thanks to Trump!
Donald Trump stated he will suspend/delay further military strikes against Iran (especially targeting Iran's power facilities or larger-scale operations).
• The escalation of the Middle East conflict in recent weeks (US-Israel military actions against Iran have been ongoing for some time) has led to high oil prices, heightened inflation concerns, rising US Treasury yields, and continuous pressure on the stock market (with the S&P 500 and others falling for multiple weeks, wiping trillions of dollars in market value).
• Trump's latest remarks were interpreted by the market as a de-escalation signal: he mentioned "not wanting a ceasefire now but considering a gradual de-escalation of actions" and "no longer guaranteeing the security of the Strait of Hormuz but it will open automatically," etc., implying no further expansion of the war scale in the short term.
• This directly alleviated the most extreme geopolitical panic → risk appetite quickly rebounded → the US dollar weakened, and stock futures surged in response.
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