05:05 PM EDT, 04/08/2026 (MT Newswires) -- US equity indexes surged while crude oil futures plummeted on Wednesday as geopolitical risk further receded amid reports that Vice President JD Vance will lead the American contingent in upcoming negotiations with Iran.

The Nasdaq Composite surged 2.7% to 22,603.4, the S&P 500 soared 2.4% to 6,773.1, and the Dow Jones Industrial Average catapulted 2.7% to 47,824.2 at the close. All sectors except energy rose intraday. Industrials, materials, and communication services led the gainers.

Vance will lead a team of negotiators in talks with Iran in Islamabad, Pakistan, on Saturday, The Wall Street Journal reported, citing the White House. Iran's parliament speaker, Mohammad Baqer Qalibaf, and Foreign Minister Abbas Araqchi will lead the team from Tehran, Reuters reported.

Meanwhile, Israel pounded Lebanon with its heaviest strikes yet on Wednesday, drawing a threat of retaliation from Iran, which said the attacks violated its ceasefire deal with the US, Reuters reported.

Araghchi said the ceasefire agreement with the US included a pause in Israel's conflict with Hezbollah in Lebanon, The New Indian Express reported, citing agencies. The White House Press Secretary Karoline Leavitt, however, clarified Lebanon wasn't part of the ceasefire deal, the WSJ reported.

Leavitt also pointed out that Trump wants the Strait of Hormuz "reopened immediately, without limitation," and added it wasn't a "definitively accepted" policy position that Iran would be allowed to charge tolls, according to the WSJ.

West Texas Intermediate crude oil futures sank 15% to $96.23, and Brent crude futures plunged 12% to $96.21, but were off their respective intraday lows.

US Treasury yields fell, with the 10-year down five basis points to 4.29%. The two-year yield dropped 4.1 basis points to 3.79%.

In precious metals, gold futures jumped 1.4% to $4,746.9 and silver futures advanced 3.4% to $74.44.

In US economic news, the minutes of the March 17-18 Federal Open Market Committee meeting were released on Wednesday.

"In light of the heightened degree of economic uncertainty, participants emphasized the importance of being nimble in adjusting the stance of policy in response to incoming data, the evolving outlook, and the balance of risks," the meeting minutes showed. "Many participants judged that, in time, it would likely become appropriate to lower the target range for the federal funds rate if inflation were to decline in line with their expectations."

A couple of policymakers pushed their expected timing of potential policy easing "further into the future," according to the document.

According to the CME FedWatch tool late Wednesday, the probability of a 25-basis-point cut in interest rates rose to over 15% from almost 4% a day ago.

Airline and cruise operator stocks surged following the ceasefire deal. Carnival (CCL) soared 11%, the top gainer on the S&P 500. United Airlines (UAL) advanced 7.8%, among the biggest outperformers on the index.

On Nasdaq, Lam Research ( LRCX ) was among the top gainers, up 9.9%, while Diamondback Energy ( FANG ) was among the steepest decliners, down 4.6%. The worst performer on the Dow was Chevron ( CVX ) , with shares slumping 4.3%.