Updated 1 min read
US stock futures surged Sunday evening as investors welcomed news of a breakthrough agreement to end the the US and Iran war ahead of a holiday-shortened trading week.
Dow futures (YM=F) climbed more than 300 points, or 0.6%, while S&P 500 futures (ES=F) gained 0.8%. Nasdaq 100 futures (NQ=F) led the advance, jumping 1.3% as investors rotated back into growth and technology names.
President Donald Trump announced on Truth Social late Sunday that a deal with Iran had been finalized, calling the agreement “complete.” Pakistan Prime Minister Shehbaz Sharif said a formal signing ceremony is expected to take place Friday in Switzerland.
Markets soared following the announcement, with Trump saying he had authorized the reopening of the Strait of Hormuz, a critical global oil shipping route. Iran is also due to received a serious of financial boons for following US agreements. Both nations are calling the deal a victory.
The development sent crude prices tumbling with West Texas Intermediate (CL=F) crude futures falling nearly 5% to $81 barrel as concerns over potential supply disruptions eased. Brent (BZ=F) crude futures fell over 3% to sit just above $84.
Wall Street enters the week with momentum following SpaceX’s (SPCX) blockbuster public debut. Shares of SpaceX soared more than 19% in their first trading session, pushing the company’s market value above $2 trillion. The stock added another 3% in after-hours trading, underscoring strong demand for high-profile growth stories.
Looking ahead, investors will focus on key economic reports, while also awaiting the Federal Reserve’s latest policy decision. According to CME FedWatch, markets are pricing in better than a 98% probability that policymakers leave interest rates unchanged.
LIVE 1 update
-
US, Iran agree to ceasefire, opening the Strait of Hormuz and removing the US naval blockage
Yahoo Finance’s Brooke DiPalma and Jake Conley report:
The US announced on Sunday that it reached a deal with Iran to end the fourth-month long war that has roiled the global market, calling for the re-opening of the Strait of Hormuz as soon as Friday. The news sent oil futures oil and stocks higher ahead of the week.
“The Deal with the Islamic Republic of Iran is now complete,” President Trump wrote on Truth Social, “I hereby fully authorize the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade. Ships of the World, start your engines. Let the oil flow!”
Trump added in a later statement on social media that the Strait of Hormuz would reopen Friday, for demining purposes.
Iranian deputy foreign minister Kazem Gharibabadi said Sunday on state TV that Iran had reached a peace deal with the US — including an end to all conflict fronts — and that negotiations for a final, lasting deal would begin within 60 days, per Reuters.
