US stocks advanced in early trading as a peace agreement between the United States and Iran sparked a market rebound, with optimism that the reopening of the Strait of Hormuz would alleviate inflation pressures, leading to a decline in oil prices.

At 9:31 AM in New York, the S&P 500 index was up 1.2%, recovering from two prior days of losses. The Nasdaq 100 index climbed 1.9%, while the Dow Jones Industrial Average rose 0.9%. Technology stocks led the gains, with Intel surging after former US President Donald Trump stated the chipmaker would collaborate with Apple to design and manufacture semiconductors domestically.

Following the formalization of a provisional peace accord with Iran, market attention shifted to the planned reopening of this critical energy chokepoint and the complex, 60-day negotiations surrounding Tehran's nuclear program. Although a large-scale movement of vessels through the Strait of Hormuz had not been observed by Thursday morning, some ships appeared to have already passed through.

Ian Lyngen of BMO Capital Markets commented, "Progress towards unlocking oil supplies from the Persian Gulf is supporting equity prices. Falling energy costs are also easing longer-term inflation concerns and driving a notable decline in longer-dated US Treasury yields."