Markets Rebound as Ukraine Agrees to U.S.-Backed Ceasefire Proposal

What started as another down day in markets reversed course Tuesday afternoon after Ukraine accepted a Trump administration proposal for a 30-day ceasefire with Russia. The agreement, reached during talks in Saudi Arabia, still requires Russia’s approval.

As part of the deal, the U.S. will resume intelligence sharing and military aid to Ukraine. While Russia has yet to respond, optimism surrounding a potential truce has lifted investor sentiment.

Adding to the positive market momentum, Ontario Premier Doug Ford suspended a 25% electricity export surcharge imposed on several U.S. states. This move follows recent trade tensions sparked by Trump’s 25% tariffs on Canadian imports. Earlier Tuesday, Trump had threatened to double the tariff to 50% on steel and aluminum, escalating the standoff.

Markets, which had been sharply lower, rebounded on the news. The Nasdaq surged 1.25%, while the S&P 500 turned positive, gaining 0.4%. Bitcoin (BTC) led a strong crypto market recovery, jumping 7% in the past 24 hours to $83,300 after dipping to $76,000 overnight. Ethereum (ETH) climbed 5.6%, and Solana (SOL) soared 10%.

Investor optimism over de-escalating geopolitical tensions and easing trade disputes fueled the rally. With markets regaining ground, traders remain watchful for Russia’s response, which could further shape the trajectory of global assets.