Good Wednesday morning. Welcome to Squawk on the Street. I'm Sarah Eisen with Carl Kintania and David Faber. We are live as always a post-9 of the New York Stock Exchange. Stocks are surging and oil is tanking on news of this two-week ceasefire with Iran with outsides gains for airlines, semiconductor equipment,

and discretionary stocks, which all got beat up over the last few weeks.

Coming up this hour, Evercores Roger Altman with us to talk about the major relief rally

and why he's advising investors to be cautious.

Plus, we'll break down Delta's results as that stock jumps, despite the CEO warning

of a meaningful cut to growth plans and the CEO of Levi's

with us as shares get a big boost on results driven by strong direct-to-consumer sales.

But guys, this is a big market move and there are macro implications of this move as well that

I just wanted to point out, which is lower oil prices, five-year break-even inflation rates come down. This is the market

expectations of inflation. And you can see directly there's already a really big impact. This is what

the Federal Reserve pays attention to to determine our, you know, this is Fed speak, our inflation

expectations anchored. Well, they were

rising a little bit on the back of these higher oil prices. They're coming down sharply. Look at the

10-year break even as well. Again, there was nothing really hugely worrisome in the last few weeks

on the oil rise, but you can see just the dramatic pullback that we're seeing this morning. And along

with that, there are now increased

odds of a Federal Reserve cutting rates and not hiking rates. I mean, the market has really flipped

its positioning on this one. You can see it in the two-year yield, which, you know, yields are

coming down right now, which implies that the Federal Reserve can be easier. They don't have to worry

as much about inflation and these higher oil. We do have a chart here. Thank you, Peter Bookbar,

that shows just what we're looking at going down the road. And as you can see, the market is

really excited about cuts going into 2027. This year now, there's about 50% odds that the Federal Reserve cuts rates by December.

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