Stock Market Today: Dow Jones, S&P 500 Futures Gain As Trump Admin Says US, Iran Will ‘Stand Down’—Verizo

U.S. stock futures rose on Monday, as the Dow Jones, Nasdaq 100, and S&P 500 indices rose, following Friday’s mixed close.

Late Sunday, the Donald Trump administration announced that both the U.S. and Iran will “stand down for now,” allowing commercial vessels to once again move freely through the critical Strait of Hormuz shipping corridor.

Furthermore, technical implementation talks regarding the initial peace memorandum remain “on track,” with a high-level diplomatic summit officially scheduled for Tuesday in Doha, Qatar.

Meanwhile, the 10-year Treasury bond yielded 4.38%, and the two-year bond was at 4.10%. The CME Group’s FedWatch tool‘s projections show markets pricing a 70.6% likelihood of the Federal Reserve leaving the current interest rates unchanged during July’s meeting.

Stocks In Focus

Viridian Therapeutics

Qualcomm

Universe Pharmaceuticals

HP

Verizon Communications

Cues From Last Session

Health care, consumer discretionary, and real estate stocks led the gains on Friday as most S&P 500 sectors closed higher, though industrials and tech bucked the trend to finish lower. U.S. stocks settled down overall, with the Nasdaq Composite dropping over 50 points to mark its fifth consecutive losing session.

Insights From Analysts

Economist Mohamed El-Erian maintains a constructive yet nuanced outlook for the U.S. financial landscape, highlighting a distinct decoupling between economic fundamentals and recent market volatility.

On the economic front, he views the U.S. as notably sturdy, pointing out that a “resilient US economy is now offering some tangible relief to lower-income consumers.”

While the inflation debate persists on Wall Street, El-Erian remains in the camp that expects no further Federal Reserve rate hikes, believing that upcoming data “will prove to be peak inflation for this cycle.”

Conversely, El-Erian attributes recent downward pressure on Wall Street primarily to market technicals rather than a systemic downturn. He emphasizes that the economy’s structural pillars remain intact, noting that “underlying corporate earnings power and AI productivity tailwinds remain robust.”

Instead of fundamental decay, the tech-heavy market dip has been driven by crowded positioning and quarter-end rebalancing, which effectively “divorce price action from underlying economic reality.”

Looking ahead, El-Erian expects the narrative to pivot back toward the production side of the American economy, with upcoming labor and ISM manufacturing data serving as the next crucial litmus tests for growth.

Upcoming Economic Data

Here’s what investors will be keeping an eye on this week.

Commodities, Crypto, And Global Equity Markets

Crude oil futures were trading higher in the early New York session by 1.31% to hover around $70.14 per barrel.

Gold Spot US Dollar fell 0.82% to hover around $4,055.69 per ounce. The U.S. Dollar Index spot was 0.24% higher at the 101.6490 level.

Meanwhile, Bitcoin (CRYPTO: BTC) was trading 0.92% lower at $59,801.17 per coin, as per the last 24 hours.

Asian markets closed mixed on Monday, as India’s Nifty 50 and South Korea’s Kospi indices fell, while Hong Kong’s Hang Seng, Australia’s ASX 200, Japan’s Nikkei 225, and China’s CSI 300 indices rose. European markets were also mixed in early trade.

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