Stocks Rallied After President Donald Trump's Ceasefire in Iran. Here's How to Invest Now.

Key Points

The war in Iran has weighed on investors' minds, so the ceasefire was welcome news.

All three major indexes climbed more than 2.5% in the trading session following Trump’s announcement.

• These 10 stocks could mint the next wave of millionaires ›

The war in Iran has represented a major source of uncertainty for investors for weeks. It's driven up oil prices, interrupted the operation of a major waterway for industrial transit, and generally hurt investor appetite for stocks -- particularly those that rely on growth environments to thrive.

But a move this week by President Donald Trump brought some relief to the stock market. All three major indexes roared higher after Trump announced that he would suspend attacks in Iran for a period of two weeks. The S&P 500, the Nasdaq Composite, and the Dow Jones Industrial Average each jumped more than 2.5% on April 8 -- the trading session immediately following the news. The Dow even posted its biggest gain in a year.

Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »

Still, geopolitical uncertainty isn't over: The U.S. and Iran are involved in negotiations, and Trump said in a Truth Social post that the U.S. military will remain in place until Iran complies with "the real agreement." And if Iran doesn't comply, the U.S. military response would be stronger than ever, Trump wrote.

All of this makes it difficult to predict the stock market's next move. Against this backdrop, here's how to successfully invest now.

Zoom out for a long-term view

First of all, it's important to zoom out and take a long-term view as you consider companies to potentially invest in and the general environment. History shows that conflicts, wars, and other periods of trouble don't last forever, and strong companies and major indexes always recover. A look at the S&P 500's path over the past 20 years, spanning times such as the financial crisis of 2008 through the coronavirus market crash in 2020, illustrates my point.

So, while headwinds can hurt stock performance and even corporate earnings in the near term, quality companies can manage these difficult times and go on to recover and advance over the long haul. This means you still should buy stocks and hold onto current positions in uncertain markets -- as long as they involve quality companies.

What do I mean by "quality"? I'm talking about companies that have delivered growth over a number of years and have established a strong competitive position in their markets. These players should also have solid prospects. A healthy financial situation is key too, allowing the company to invest in growth and weather tough moments. You can find such stocks in any industry, from growth-related ones such as tech to areas seen as safe havens such as healthcare.

Companies that have proven themselves

And two great examples are e-commerce and cloud computing giant Amazon (NASDAQ: AMZN) and healthcare mammoth Johnson & Johnson (NYSE: JNJ). They've demonstrated their ability to handle tough markets and deliver significant returns to investors over time, as shown in the 20-year view of their stock performance.

Another smart addition to a portfolio right now is the dividend stock. These players offer you passive income, no matter what the general market or even that particular stock is doing. The best place to look for these is in the list of Dividend Kings, as they've proven their commitment to dividends by increasing them annually for at least 50 years. Beverage leader Coca-Cola is a well-known example.

Finally, in tough markets and even during better times, it's important to focus on valuation. The one positive point about a difficult market is that, often, you can pick up quality companies for bargain prices. Today, artificial intelligence (AI) stocks offer a particularly interesting opportunity for investors, as they -- the leaders of market gains over the past few years -- were among the first to suffer during the first-quarter declines.

Nvidia (NASDAQ: NVDA) is the leading AI chip designer, and moving forward, its broad product portfolio should make it the key player powering AI of the future.

Meanwhile, the stock is trading around its lowest in a year, at 21x forward earnings estimates. At these levels, it's a no-brainer buy for the growth investor aiming to benefit from the next stages of the AI boom.

So, today, whether the market continues to rally or if it returns to the doldrums or a state of volatility for a while, don't worry: This plan, focused on buying quality stocks at reasonable valuations and adding dividend players to the mix, should set you up for a long-term win.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

Nvidia:if you invested $1,000 when we doubled down in 2009,you’d have $477,038!Apple:*if you invested $1,000 when we doubled down in 2008,you’d have $49,602!Netflix:if you invested $1,000 when we doubled down in 2004,you’d have $550,348!

Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.

**Stock Advisor returns as of April 11, 2026. *

Adria Cimino has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Nvidia. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.