Trump Just Extended the Iran Ceasefire. Here's What It Means for Investors

Key Points

After the negotiation between the U.S. and Iran was called off, Trump said the ceasefire would be extended.

Investors may be starting to shift their attention elsewhere.

Two tech ETFs just posted their 15th straight day of gains.

• 10 stocks we like better than iShares Trust - iShares Semiconductor ETF ›

Stocks fell for the second day in a row today as investors responded to news that there would be no negotiations to end the war in Iran as had been planned.

All three major indexes finished down 0.6% as earlier momentum toward unwinding the war, including Iran's reclosing of the Strait of Hormuz, has faded.

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 »

After hours, however, markets got a shot in the arm after President Trump said he would extend the ceasefire. In a social media post, Trump said he would extend the pause in fighting to give Iran a chance to come up with a unified proposal, saying the ceasefire would continue until "such time as their proposal is submitted and discussions are concluded."

The Prime Minister of Pakistan, Shehbaz Sharif, thanked Trump for accepting Pakistan's request to extend the ceasefire.

In response to that announcement, stocks moved higher in after-hours trading with Vanguard S&P 500 ETF (NYSEMKT: VOO) and the Invesco QQQ Trust (NASDAQ: QQQ) up 0.4% on the news.

Is this the off-ramp investors have been waiting for?

Stocks tumbled through most of March as oil prices spiked from the war, and investors feared that it could lead to a global recession or at least slower economic growth.

However, in the three weeks since then, stocks have soared as investors have reacted to signs that the war could be wrapped up soon, including the ceasefire, public opinion turning against the war, and Trump's own comments that seem to recognize that it's in his interest to end the war sooner, rather than later.

It's also notable that this ceasefire announcement has no clear deadline, though it's ostensibly to give Iran enough time to arrange its negotiating positions; the ceasefire could carry on indefinitely.

As it drags out, investors are likely to turn their attention elsewhere, and they already seem to be doing that.

The AI trade, for example, has come roaring back. The State Street Technology Select Sector SPDR ETF (NYSEMKT: XLK) just closed higher for the 15th session in a row, and the iShares Semiconductor ETF (NASDAQ: SOXX) did the same.

While tech stocks are generally cyclical and sensitive to global economic headwinds, they also have less direct exposure to oil prices than industries like industrials, consumer goods, transportation, and energy, as software is a service, and hardware, such as chips and devices, tend to be high-value and require relatively little energy to produce and transport. Data centers are an exception and rely on large amounts of energy.

Focus on the long term

For investors, the last two months are a reminder of why it's best to focus on the long term. There's been a ton of volatility during that period, but stocks are not far from where they were before the war started, showing that the market tends to rebound from short-term shocks.

Long-term investing isn't just a proven way to earn returns; it's also much easier psychologically than managing your portfolio with every change in the news. As it often is in history, holding through the turmoil has paid off.

Should you buy stock in iShares Trust - iShares Semiconductor ETF right now?

Before you buy stock in iShares Trust - iShares Semiconductor ETF, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and iShares Trust - iShares Semiconductor ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $511,411! Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,238,736!

Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 199% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

**Stock Advisor returns as of April 21, 2026. *

Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard S&P 500 ETF and iShares Trust-iShares Semiconductor ETF. 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.