Traders work on the floor of the New York Stock Exchange (NYSE) in New York City.
Spencer Platt | Getty Images
Stock futures are rising Sunday night to kick off the holiday-shortened trading week after President Donald Trump announced that an agreement had been reached to end the war between the U.S. and Iran.
Futures tied to the Dow Jones Industrial Average added 334 points points, or 0.7%. S&P 500 futures climed 0.9%, while Nasdaq 100 futures popped 1.4%.
Trump said late Sunday on social media that the deal with Iran was “now complete.” Pakistan Prime Minister Shehbaz Sharif said an official signing ceremony would take place on Friday in Switzerland.
Trump also said he authorized the reopening of the key Strait of Hormuz passageway, sending oil prices tumbling on Sunday. U.S. crude fell nearly 5%.
But Trump’s announcement came after an exchange of fire between Israel and the Tehran-backed Hezbollah in Lebanon raised uncertainty over whether the deal would get across the finish line on Sunday.
The three major U.S. stock averages are coming off a winning week. Trader sentiment was bolstered on Friday by SpaceX‘s record-setting initial public offering.
SpaceX ended Friday with a market cap above $2 trillion after a climb of more than 19%. The rocket company’s stock rose more than 3% in extended trading after Friday’s market close.
“A successful SpaceX IPO is generally a positive signal for broader investor interest in innovation and technology,” said Evan Schlossman, principal at SuRo Capital. “It’s a reflection of the demand, interest, and desire to invest in these types of companies.”
Investors are watching for economic data on housing and retail sales this week. They will also closely monitor the Federal Reserve policy meeting, which Fed funds futures indicate has a more than 98% chance of ending with rates unchanged, according to CME’s FedWatch tool.
The stock market will be dark on Friday in observance of the Juneteenth holiday.
SpaceX sees highest retail investor interest in recent IPO history, data shows
SpaceX‘s IPO had the largest buy-in from retail investors in recent history, according to VandaTrack.
The firm told clients that individual investors bought around $118 million worth of shares in the rocket company on balance during the session. SpaceX accounted for more than half of all net buying for single stocks in the session, according to Vanda.
But Vanda said retail traders simultaneously dumped big year-to-date winners last week including Micron, Marvell and Robinhood. Across the board, last week saw the weakest net retail buying since March 2020, Vanda found.
In other words: “The SpaceX IPO was not a boat that lifted all tides for retail investors,” Vanda told clients.
SpaceX opened at $150 per share on Friday, marking a roughly 11% gain over its $135 IPO price. Shares surged more than 19% in the session, bringing its market cap above $2 trillion.
— Alex Harring
Oil prices drop after Trump says Strait of Hormuz will reopen
Oil prices tumbled Sunday after President Donald Trump said the U.S. has completed a deal with Iran to reopen the Strait of Hormuz.
U.S. crude oil futures were down 4.8% to $80.80 per barrel shortly after 6 p.m. ET. Brent futures, the international benchmark, traded 3.9% lower to $83.89 per barrel.
Brent, 1-day
— Spencer Kimball
Trump says U.S. and Iran reach a deal
President Donald Trump on Sunday announced the completion of a peace deal to end the war with Iran.
“The Deal with the Islamic Republic of Iran is now complete,” Trump wrote on social media. “Congratulations to all!”
“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,” Trump added.
“Ships of the World, start your engines,” Trump wrote. “Let the oil flow!”
— Alex Harring
Stock futures are higher
Stock futures are rising Sunday night.
Dow futures added 0.6% shortly after 6 p.m. ET. S&P 500 and Nasdaq 100 futures jumped 0.7% and 0.8%, respectively.
— Alex Harring
