# Peace breaks out, stocks surge — ride the relief rally on chipmakers

_AI-generated trading idea · LONG · AMD, NVDA, SPY_

> Canonical page: https://commonquant.ai/research/for-you/peace-breaks-out-stocks-surge-ride-the-relief-rally-on-chipm--3271e18d-6820-4b64-8753-377b73ac4340

The US and Iran agreed to stop fighting and reopen a critical shipping route for oil. World markets jumped on the relief news, with the Dow up 500 points and tech chips like AMD hitting all-time highs.

## Idea

When a major geopolitical threat suddenly disappears, investors breathe a sigh of relief and move money out of safe havens and back into growth stocks. That's exactly what's happening today. AMD surged 8% to a brand-new all-time high, and NVIDIA climbed 4% as investors feel confident taking on risk again. When the overall market rallies this strongly on news that removes a major source of global uncertainty, it often kicks off a multi-day momentum run where traders keep buying anything tech-related. Riding that wave while it lasts makes sense, but you'll want to exit if the market starts to give back these gains.

## Key details

- Symbols: AMD, NVDA, SPY
- Timeframes: 1d, 1h
- Tags: \#geopolitics, \#momentum, \#stock, \#chips

## Community

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## News sources

- [Stocks leap worldwide, and oil prices drop after the US and Iran reach a tentative deal on their war](https://finance.yahoo.com/politics/articles/deal-ending-iran-war-sends-010029568.html) — Yahoo Finance
- [AMD Jumps 8% to a Record High, NVIDIA Climbs 4%, Intel Rises 3% in a Risk-On Chip Surge](https://finance.yahoo.com/markets/stocks/articles/amd-jumps-8-record-high-162242216.html) — Yahoo Finance
- [Stock Market Today: Dow Rallies 500 Points On U.S.-Iran Deal; Oil Prices Tumble (Live Coverage)](https://www.investors.com/market-trend/stock-market-today/dow-jones-sp500-nasdaq-us-iran-deal-oil-prices/?src=A00220&yptr=yahoo) — Investor's Business Daily

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