U.S. stock index futures rose sharply on Sunday evening after Washington and Tehran confirmed they had reached a peace deal to end their war and reopen key shipping lanes in the Middle East.
Focus this week is squarely on a Federal Reserve meeting, with the central bank expected to leave interest rates steady.
S&P 500 Futures rose 0.8% to 7,557.75 points by 19:06 ET (23:06 GMT). Nasdaq 100 Futures rose 1.3% to 30,337.74 points, while Dow Jones Futures rose 0.6% to 51,917.0 points.
Futures rose after a strong Friday session on Wall Street, where SpaceX (NASDAQ:SPCX) soared in its debut session.
US-Iran peace deal confirmed, to be signed on Friday
U.S. President Donald Trump said on Sunday that a peace deal with Iran was now complete, with the Strait of Hormuz set to reopen in the coming days.
Separately, Iranian Deputy Foreign Minister Kazem Gharibabadi confirmed on state TV that a memorandum of understanding with Washington had been finalized, and will be officially signed on Friday in Switzerland.
The details of the deal were not immediately clear, although it is expected at the very least to spur the reopening of Hormuz and lift a U.S. naval blockade of Iran.
Whether Iran had agreed to cease its nuclear activities, which was a key demand from Washington, remained largely unclear.
Still, the peace deal is expected to help alleviate some pressure on the global economy from continued geopolitical strife in the Middle East. The U.S.-Israel war on Iran had begun in late-February and had sparked widespread disruptions in energy markets and shipping activity.
Wall Street had rallied on this notion last week, as markets bet that cooling energy markets would help bring down inflation and open a path towards eventual interest rate cuts by the Federal Reserve.
Wall St strong as SpaceX surges in trading debut; Fed awaited
Wall Street indexes closed higher on Friday amid continued speculation over an Iran peace deal, while SpaceX also rose sharply after a bumper initial public offering.
The S&P 500 rose 0.5%, the NASDAQ Composite added 0.3%, and the Dow Jones Industrial Average rose 0.7%.
SpaceX jumped over 19% in its trading debut, closing at a market capitalization of about $2 trillion. The company raised $75 billion in the largest IPO in U.S. history.
The rocket company’s stellar debut in public markets made CEO Elon Musk the world’s first trillionaire.
Focus this week is squarely on a Fed meeting, with the central bank expected to leave rates unchanged.
The meeting is the first under new Chair Kevin Warsh, and will be closely watched for more cues on the path of interest rates in the coming months.
A recent energy-driven surge in inflation, coupled with signs of a strong job market, furthered the case for an extended hold by the Fed.
source https://www.investing.com/news/stock-market-news/wall-st-futures-surge-on-usiran-peace-deal-fed-in-focus-4741124
