India, April 8 -- US stock futures surged in after-hours trading after US President Donald Trump announced that Washington had agreed to a two-week ceasefire with Iran, easing fears of an immediate escalation in the Middle East conflict.

Futures tied to the Dow Jones Industrial Average rose about 1.53%, while S&P 500 futures gained 1.58% and Nasdaq futures climbed 1.68% shortly after the announcement. The sharp move reflected investor optimism that the pause in hostilities could reduce geopolitical risks that had recently pressured global markets. 

Analysts said the ceasefire announcement helped restore some confidence among investors who had been bracing for potential US strikes on Iran following rising tensions around the strateg...