US stock futures surged on Monday as investors welcomed news of a breakthrough agreement to end the US-Iran war as they entered a holiday-shortened trading week.
Dow Jones Industrial Average futures (YM=F) climbed roughly 1%, while those on the S&P 500 (ES=F) advanced 1.2%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) led the advance, jumping 1.9% on the heels of Friday’s solid gains for Wall Street stocks.
The US announced late Sunday that a ceasefire deal with Iran has been reached, with President Trump calling the agreement “complete” in a post to Truth Social, Prime Minister Shehbaz Sharif of deal broker Pakistan said a formal signing ceremony is expected on Friday in Switzerland.
Talks on a final peace deal will begin within 60 days, Tehran signaled, as questions remained as to the future of Iran’s nuclear program. The Middle Eastern country could get reconstruction funding, an unfreezing of assets, and an easing of oil sanctions in the package, experts said.
The blockaded Strait of Hormuz will reopen for mine removal following Friday’s signing of the interim pact, Trump said, marking a return to normality for the critical oil-shipping route. Oil prices tumbled over 5%, with global benchmark Brent crude futures (BZ=F) breaking below $83 a barrel. West Texas Intermediate (CL=F) futures fell sank to around $80 barrel as concerns over supply disruptions eased.
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.
