Meta Platforms, Nvidia to Amazon: Magnificent Seven stocks jump up to 6% as US-Iran ceasefire lifts sentiment

US stocks opened with a sharp gap-up on Wednesday, 8 April, as sentiment improved after the US and Iran reached a temporary ceasefire agreement. All three key indices—the S&P 500, Dow Jones, and Nasdaq—opened with gains of over 2%.

The wave of optimism extended to the high-growth technology sector, particularly the ‘Magnificent Seven’ stocks, which began the session with strong gains. Meta Platforms rose 6%, Tesla 5.14%, Alphabet 5.5%, Nvidia 4%, Amazon 6.6%, Microsoft 3.5%, and Apple 2%.

Just hours before launching his threatened attacks on Iranian bridges, power plants, and other infrastructure, US President Donald Trump announced a two-week suspension of strikes in exchange for Tehran allowing safe passage through the Strait of Hormuz.

The US has also received a 10-point proposal from Iran, which Trump described as a workable basis for negotiations. He added that the ceasefire would be bilateral, with Iran also holding off attacks on Israel and Gulf nations.

As part of the two-week truce, Iran agreed to allow ships to pass through the Strait of Hormuz, easing concerns over energy supply disruptions that had threatened to strain the global economy and fuel inflation.

Although the ceasefire is temporary, it was enough to trigger a broad rally across global markets, as investors closely tracked developments in the Middle East, which had previously driven crude and gas prices to multi-year highs and raised concerns over potential rate hikes by global central banks.

The ceasefire announcement followed over a month of escalating tensions, during which the US and Israel carried out strikes, while Iran targeted infrastructure across the region, including energy facilities and US-linked assets in the Gulf.

Following Trump’s announcement, crude oil prices, which had surged during the conflict, retreated sharply, with Brent and WTI falling over 15%, marking one of the steepest single-day declines in recent times. The pause in hostilities also led to a sharp drop in the US dollar.

The truce not only triggered a correction in crude oil prices but also revived expectations of US Federal Reserve rate cuts.

Traders are once again pricing in a strong likelihood of rate cuts this year, with swaps indicating around a 60% probability of a cut by year-end, compared to almost no chance at the start of the week. Prior to the conflict, markets had priced in more than two rate cuts.

Meta unveils new AI model

Apart from the optimism surrounding the Middle East ceasefire, Meta’s stock also rallied following the announcement of a new artificial intelligence model, Muse Spark.

This marks the Facebook parent’s first AI model release in more than a year.

Muse Spark was developed by Meta Superintelligence Labs, a new team of advanced AI researchers led by Chief AI Officer Alexandr Wang, who was hired by Mark Zuckerberg as part of a $14 billion investment in Scale AI last year.

Muse Spark will power the Meta AI chatbot and, in a shift from the company’s prior open-source strategy, is a closed model—meaning its design and code will not be made public, Bloomberg reported.

Tech stocks still far from recent highs

Although today’s rally is largely sentiment-driven, tech stocks continue to trade at steep discounts to their recent peaks, as investors have turned cautious since the start of the year amid concerns that the companies’ strong revenue growth from AI accelerator sales may not be sustainable.

At the same time, anxiety around AI-driven disruption has weighed on software companies and other sectors.

Microsoft Corp. and Meta Platforms Inc., two of the heaviest spenders on AI, are still down 32% and 25%, respectively, from their October peaks, with the Facebook parent also facing pressure from recent legal challenges.

Other tech stocks have also seen declines, with Amazon down 15% from its recent high, Apple slipping 10%, and Tesla falling 30% since peaking in December 2025.

Despite leading the recent sell-off, tech giants continue to enjoy a positive outlook on Wall Street, with earnings growth expected to outpace the broader S&P 500 this year. Valuations have also become more attractive compared to a few months ago.

(With inputs from Bloomberg)

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