Markets saw a sharp turnaround following the announcement that Ukraine has accepted a 30-day ceasefire proposal from the U.S. to temporarily halt its conflict with Russia. While Russia has yet to formally respond, the deal’s success depends on its acceptance. The agreement was announced in a joint statement by Ukraine and the U.S. following high-level discussions in Saudi Arabia.

As part of the agreement, the U.S. will immediately resume intelligence sharing and military support for Ukraine, a key point that had been on hold.

Adding to the positive sentiment, Ontario Premier Doug Ford appeared to soften his stance in an ongoing trade dispute with the U.S. He agreed to suspend the 25% surcharge on electricity exports to multiple U.S. states. This move follows retaliatory tariffs imposed by former U.S. President Donald Trump, who had recently threatened to escalate the levies on Canadian steel and aluminum imports from 25% to 50%.

Markets responded swiftly to the news. After starting the day in negative territory, U.S. stock markets surged. The Nasdaq climbed 1.25%, and the S&P 500 rose by 0.4%. Cryptocurrencies experienced a sharp rebound, with Bitcoin (BTC) jumping 7% to $83,300 after plunging to $76,000 overnight. Other digital assets, including Ethereum (ETH) and Solana (SOL), also posted significant gains, up 5.6% and 10%, respectively.

With geopolitical tensions temporarily easing and trade relations improving, investors took a more optimistic stance, reversing what had been shaping up to be another down day in financial markets.