United States stock futures traded higher on Sunday evening (Monday AEST) after President Donald Trump announced that an agreement had been reached to end the war between the United States and Iran.
By 10:10 am AEST (12:10 am GMT), Dow futures lifted 1.4%. S&P 500 futures climbed 1.7%, while Nasdaq 100 futures advanced 2.4%.
Trump said late Sunday via Truth Social that the deal with Iran was “now complete”.
Trump also said he authorised the reopening of the key Strait of Hormuz passageway, sending oil prices tumbling on Sunday. U.S. crude fell nearly 5%.
Pakistan Prime Minister Shehbaz Sharif said in a post on X that an official signing ceremony would take place on Friday in Switzerland.
The announcement followed a volatile geopolitical backdrop, with earlier exchanges of fire between Israel and the Iran-backed Hezbollah in Lebanon raising uncertainty over whether the agreement would hold through the weekend.
The three major U.S. benchmark averages are coming off a strong week, with sentiment further boosted on Friday by SpaceX’s record-setting initial public offering.
SpaceX ended the week with a market capitalisation above $2 trillion after a gain of more than 19%.
Investors are now turning their attention to upcoming economic data on housing and retail sales, as well as this week’s Federal Reserve policy meeting.
Fed funds futures indicate a more than 98% probability that rates will remain unchanged, according to the CME Group FedWatch Tool.
U.S. markets will remain closed on Friday in observance of the Juneteenth holiday.
