The ASX 200 experienced a significant surge, closing 223 points higher, or 2.56%, driven by a powerful rotation back into sectors hardest hit by the crisis, particularly technology and gold stocks. The market's positive response was triggered by the US and Iran's agreement to a two-week ceasefire, reopening the Strait of Hormuz and alleviating concerns over oil supply disruptions. Bond yields fell sharply, unleashing a rotation back into tech, real estate, and consumer stocks, while energy bore the brunt of the collapsing oil price. The Gold Sub-Index (+8.8%) stood out, benefiting from rising benchmark gold and silver futures, as well as falling bond yields. Record cash flow in the March quarter for Bellevue Gold (+18.9%) further fueled the gold sector's rally. The Information Technology sector (+7.3%) was the second-best performer, with falling bond yields lifting the present value of future earnings for high-growth stocks. The Consumer Discretionary sector (+3.5%) rebounded as the ceasefire lifted consumer confidence expectations. Real Estate (+3.9%) rallied as bond yields retreated, making property income streams more attractive. Financials (+2.8%) participated in the broad risk-on rally, with major banks gaining at least 1.85%. Resources (+2.5%) were broadly stronger, with copper futures up 3.4%. Energy (-7.1%) was the session's clear casualty, with Brent crude futures plunging 13.2% as the ceasefire and Strait of Hormuz reopening removed the supply-disruption premium. The Utilities (-4.2%) and Consumer Staples (-0.8%) sectors were also negatively impacted by the risk-off trade. Among the top gainers were Greatland Resources (+14.0%), Life360 (+11.9%), Hub24 (+11.0%), WiseTech Global (+10.7%), and Westgold Resources (+10.2%). The worst blue chip losers included Woodside Energy (-10.4%), Origin Energy (-5.7%), and Whitehaven Coal (-5.3%). The market's positive sentiment was further supported by the Nasdaq Composite Index's strong performance, with a 5% gain in white candles and a typical long downward-pointing shadow, indicating excess demand and potential FOMO. However, the supply side's response remains uncertain, with questions about the sustainability of the rally and the potential for short covering.
