Wall Street heads into a high-stakes week after a powerful rally fueled by easing geopolitical tensions.

A packed earnings calendar will now test whether the market’s momentum can be sustained.

CNBC host Jim Cramer outlined his strategy for the upcoming trading week after a powerful market surge tied to easing geopolitical tensions. He described the rally as one of the most notable he has witnessed, driven by sharp gains across major indexes.

The surge followed developments in the Middle East, where Iran reopened the Strait of Hormuz during a ceasefire between Israel and Lebanon. The move eased supply concerns and lifted investor sentiment, CNBC reports, pushing equities higher amid improving risk appetite.

Market Momentum Builds

Major indexes rallied strongly as the Dow Jones Industrial Average climbed 869 points, while the S&P 500 and Nasdaq Composite also posted solid gains.

The Nasdaq extended its winning streak to 13 sessions, marking its longest run since 1992.

Cramer emphasized the market’s durability, noting stocks have advanced through multiple phases of conflict. He said broad participation across sectors has supported the rally despite ongoing geopolitical uncertainty.

Geopolitical Risks Still Linger

Despite optimism, tensions remain unresolved. Former President Donald Trump said U.S. naval restrictions on Iranian shipping will stay in place until a formal agreement emerges, signaling continued uncertainty for global markets.

On Monday, Alaska Air Group Inc. (NYSE:ALK) will report results. Cramer suggested improved geopolitical stability could reignite consolidation trends in the airline sector.

Procter & Gamble Co. (NYSE:PG) is expected to report softer results on Friday. However, Cramer views the stock as a defensive play with attractive valuation levels.

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