Reports Of Progress In U.S.-Iran Talks May Lead To Initial Uptick On Wall Street

The major U.S. index futures are currently pointing to a slightly higher open on Monday, with stocks likely to add to the strong gains posted during last Thursday’s session.

A slump by the price of crude oil may contribute to early strength on Wall Street amid reports of progress in talks between the U.S. and Iran in Switzerland.

Vice President JD Vance told reporters the talks have made “great progress” despite a “little bit of threatening” and a “little bit of whining.”

Vance also called Iran’s agreement to allow IAEA inspectors to return to their country a “major milestone for the American people, and the first step in permanently denuclearizing or permanently ending a nuclear weapons program in Iran.”

In a joint statement, Qatari and Pakistani mediators also said “encouraging progress has been made” during the negotiations.

Overall buying interest may be somewhat subdued, however, as wait for more concrete signs that the fragile peace deal will hold.

A lack of major U.S. economic data may also keep some traders on the sidelines ahead of the release of key inflation data later in the week.

After coming under pressure late in the previous session, stocks showed a significant move back to the upside in early trading on Thursday and continued to turn in a strong performance throughout the day.

The tech-heavy Nasdaq led the way higher, surging 496.28 points or 1.9 percent to 26,517.93. The S&P 500 also jumped 80.48 points or 1.1 percent to 7,500.58, while the narrower Dow posted a much more modest gain, inching up 72.15 points or 0.1 percent to 51,564.70.

For the holiday shortened week, the Nasdaq shot up by 2.4 percent, the S&P 500 advanced by 0.9 percent and the Dow climbed by 0.7 percent.

The rebound on Wall Street partly reflected a positive reaction to news the U.S. and Iran have officially signed a preliminary agreement to end the Middle East war.

U.S. President Donald Trump and his Iranian counterpart Masoud Pezeshkian have each signed the memorandum of understanding setting up negotiations to reach a permanent peace deal

The MoU will enter into force with immediate effect and as a first step, Iran will reopen the Strait of Hormuz and the United States will lift the naval blockade of Iranian ports.

As per the 14-point framework deal, the U.S. and Iranian teams will begin talks to reach a final deal over the next 60 days.

The news has contributed to a steep drop by the price of crude oil, with crude oil futures pulling back further toward the levels seen before the war began in late February.

“That has huge significance for inflation and interest rates, as well as business, consumer and investor sentiment,” said Russ Mould, investment director at AJ Bell. “It takes the pressure off industries and households and is hugely positive for global economic growth.”

Intel (INTC) also helped lead a rally by semiconductor stocks, with the chipmaker soaring by 10.6 percent to a record intraday high.

The surge by Intel came after Trump said in a post on Truth Social that Apple (AAPL) has agreed to work with the company to design and build its chips in the U.S.

In U.S. economic news, a report released by the Labor Department showed a modest pullback in first-time claims for U.S. unemployment benefits in the week ended June 13th.

The Labor Department said initial jobless claims dipped to 226,000, a decrease of 4,000 from the previous week’s revised level of 230,000.

Economists had expected jobless claims to edge down to 225,000 from the 229,000 originally reported for the previous week.

With Intel leading the way higher, semiconductor stocks spiked, driving the Philadelphia Semiconductor Index up by 6.4 percent to a record closing high.

The steel drop by the price of crude oil has also contributed to substantial strength among airline stocks, with the NYSE Arca Airline Index surging by 3.8 percent.

Computer hardware and housing stocks are also seeing significant strength, while energy and gold stocks moved sharply lower.

Commodity, Currency Markets

Crude oil futures are sliding $0.72 to $75.88 a barrel after slipping $0.19 to $76.60 a barrel last Friday. Meanwhile, after plunging $135.50 to $4,245.90 an ounce in the previous session, gold futures are falling $22.30 to $4,223.60 an ounce.

On the currency front, the U.S. dollar is trading at 161.72 yen versus the 161.28 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.1461 compared to last Friday’s $1.1468.

Asia

Stock markets in Asia traded on a mostly positive note on Monday amidst signs of diplomatic progress between the U.S. and Iran. Strength in AI and chip companies boosted stock prices. Hawkish signals from the Federal Reserve as well as the conflict in Lebanon limited gains.

China’s Shanghai Composite Index jumped 1.8 percent from the previous close of 4,090.48 to finish trading at 4,163.10. The day’s trading ranged between 4,070.17 and 4,164.42. The index has gained close to 24 percent over the course of the past year.

The Shenzhen Component Index surged 2.1 percent from the previous close of 16,030.7 to close trading at 16,372.50. The index has soared more than 63 percent over the course of the past year.

The Japanese benchmark Nikkei 225 Index shot up 1.6 percent to close trading at 72,353.96 amidst reports that the government was considering mobilizing public and private investment in physical AI technologies. The day’s trading ranged between 72,831.73 and 71,009.52 even as the Japanese yen slipped to a 40-year low against the U.S. dollar.

Fujikura jumped 19.4 percent followed by J. Front Retailing that surged 15.9 percent. Taiyo Yuden plunged 9.1 percent followed by Tokyo Electric Power Company that shed 7.1 percent.

The Hang Seng Index of the Hong Kong Stock Exchange slid 0.7 percent from the previous close to finish trading at 23,768.52. The day’s trading range was between a high of 23,863.71 and a low of 23,444.86. The index has added a little over 1 percent over the course of the past year.

The Korean Stock Exchange’s Kospi Index climbed 0.7 percent from the previous close of 9,052.42 to close trading at 9114.55. The day’s trading range was between 8,900.68 and 9,253. Boosted by a tech rally, the index has recorded a good show, with gains of more than 201 percent over the course of the past year.

Australia’s S&P/ASX 200 Index closed trading at 8,816.10, edging down 0.1 percent from the previous close of 8,828.70. The day’s trading ranged between 8,793.80 and 8,851.80.

Fletcher Building led gains with a surge of 4.9 percent. Perenti Global followed with gains of 4.8 percent. Wisetech Global plunged 18.4 percent amidst reports of police investigation against its founder.

The NZX 50 Index of the New Zealand Stock Exchange fell 0.4 percent to close trading at 13,446.05. The day’s trading ranged between 13,446.05 and 13,584.96. The index has gained almost 7 percent over the course of the past year.

Fletcher Building led gains with a surge of 5 percent. KMD Brands led losses with a decline of 5 percent.

Europe

European stock markets are showing a lack of direction as investors asses the developments surrounding the Middle East process as well as the political developments in the United Kingdom.

Amidst Prime Minister Keir Starmer’s resignation, the U.K.’s FTSE 100 Index is trading 0.3 percent above the previous closing level of 10,363.27. It is currently trading at 10,390.43 after ranging between 10,345.75 and 10,394.60.

France’s CAC 40 Index has slid 0.8 percent in the day’s trading at its current level of 8,358.28. The day’s trading ranged between 8,435.81 and 8,353.06. STMicroElectronics is leading gains with an addition of 1.87 percent whereas Hermes International is leading losses with a plunge of 5.3 percent. Only 8 of the 40 scrips are trading in overnight positive territory.

Germany’s DAX is currently trading at 24,931.96, shedding 0.2 percent from Friday’s close of 24,985.82. The day’s trading ranged between 24,896.19 and 25,082.78. Infineon Technologies tops gains with a surge of 4.9 percent whereas Volkswagen tops losses with a decline of 2.8 percent. Only 8 of the 40 scrips are trading in overnight positive territory.

Switzerland’s Stock Market Index has also dropped 40 points or 0.3 percent from the previous close of 13,774.02 and is currently trading at 13,734.30. The day’s trading ranged between 13,707.30 and 13,773.80. Lonza Group led gains with an addition of 0.9 percent whereas Holcim led losses with a decline of 2.4 percent.

The pan-European Stoxx 50 is currently trading flat at 6,293.86. The day’s trading ranged between 6,280.95 and 6,314.66.

Amidst progress in peace talks between the U.S. and Iran, the safe-haven dollar is trading on a flat note. The EUR/USD pair is currently trading 0.10 percent lower at 1.1458 whereas the GBP/USD pair is trading 0.03 percent higher at 1.3238. The USD/CHF pair has added 0.10 percent to trade at 0.8079.

Major European markets had finished trading on a mostly negative note on Friday amid mixed signals surrounding the U.S.-Iran negotiations as well as renewed tensions between Israel and Lebanon.

U.S. Economic News

No major U.S. economic data is scheduled to be released today.