\n<\/p>\n
The major U.S. index futures are currently pointing to a sharply higher open on Monday, with stocks likely to extend the strong upward move seen over the two previous sessions.<\/p>\n
The upward momentum on Wall Street comes following news the U.S. and Iran have reached an agreement to end more than three months of war.<\/p>\n
President Donald Trump said in a post on Truth Social that a deal with Iran is “now complete” and authorized the “toll free opening” of the Strait or Hormuz and the immediate removal of the U.S. blockade of Iranian ports.<\/p>\n
Trump later clarified that the Strait of Hormuz would reopen upon the signing of the deal of Friday for purposes of mine removal.<\/p>\n
The agreement reportedly extends the U.S.-Iran ceasefire for 60 days, with the countries set to use that window to negotiate over Iran’s nuclear enrichment and the disposal of its highly enriched uranium.<\/p>\n
U.S. crude oil futures have plunged by more than 5 percent in reaction to the news, easing concerns about the outlook for inflation.<\/p>\n
“Prior to the deal, investors had become increasingly concerned that higher energy costs would feed into broader inflation pressures and potentially force policymakers into additional tightening,” said Daniela Hathorn, Senior Market Analyst at Capital.com.<\/p>\n
“The sharp decline in oil prices does not eliminate inflation risks altogether, but it does reduce some of the urgency surrounding them,” she added. “That is particularly relevant this week as the Federal Reserve meets for the first time under new Chair Kevin Warsh.”<\/p>\n
Following the rally seen over the course of Thursday’s session, stocks saw further upside during trading on Friday. The major averages fluctuated early in the session but spent most of the day in positive territory.<\/p>\n
The Dow advanced 353.51 points or 0.7 percent to 51,202.26, the S&P 500 climbed 37.16 points or 0.5 percent to 7,431.46 and the Nasdaq rose 79.18 points or 0.3 percent at 25,888.84. For the week, the major averages all increased by 0.7 percent.<\/p>\n
Optimism about an end to the conflict in the Middle East contributed to continued strength on Wall Street, although traders seemed reluctant to make more significant moves amid conflicting comments from President Donald Trump.<\/p>\n
Trump called off a previously announced attack on Iran on Thursday and signaled that a peace deal was near, triggering the rally by stocks.<\/p>\n
In a post on Truth Social this morning, however, Trump claimed terms of the deal leaked by Iran have “NOTHING to do with the terms that were agreed to, in writing.”<\/p>\n
Trump also referred to the Iranians as “very dishonorable people to deal with,” adding, “With them, there is no such thing as dealing in good faith.”<\/p>\n
Reports have indicated the U.S.-Iran memorandum of understanding calls for the Strait of Hormuz to be reopened immediately without tolls and for Iran to receive sanctions relief based on compliance.<\/p>\n
The deal would also reportedly extend the ceasefire for 60 days, including in Lebanon, with nuclear negotiations set be held during that time.<\/p>\n
A report from Bloomberg said the U.S. and Iran may sign the agreement on the sidelines of the Group of Seven world leaders summit next week.<\/p>\n
An X post from Pakistani Prime Minister Shehbaz Sharif claiming a “final, agreed upon text of the peace deal has been reached” added to the positive sentiment.<\/p>\n
Traders also kept an eye on shares of SpaceX (SPCX), with the rocket maker making its debut on the Nasdaq in the largest initial public offering (IPO) in history. SpaceX soared by 19.3 percent on the day. <\/p>\n
Gold stocks moved sharply higher along with the price of the precious metal, resulting in a 3.1 percent spike by the NYSE Arca Gold Bugs Index.<\/p>\n
A steep drop by the price of crude oil also contributed to substantial strength among airline stocks, with the NYSE Arca Airline Index surging by 2.8 percent.<\/p>\n
Financial, computer hardware and semiconductor stocks also saw considerable strength, while some weakness was visible among biotechnology and utilities stocks.<\/p>\n
Commodity, Currency Markets<\/b> <\/p>\n
Crude oil futures are plummeting $4.64 to $80.24 a barrel after plunging $2.83 to $84.88 a barrel last Friday. Meanwhile, after spiking $124.80 to $4,238.80 an ounce in the previous session, gold futures are surging $122 to $4,360.80 an ounce.<\/p>\n
On the currency front, the U.S. dollar is trading at 160.15 yen versus the 160.21 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.1609 compared to last Friday’s $1.1567.<\/p>\n
Asia<\/b><\/p>\n
Asian stocks surged on Monday after U.S. President Donald Trump announced a tentative peace deal with Iran, helping ease investor concerns about inflationary pressures and lessening the need for interest-rate hikes.<\/p>\n
A signing ceremony is set for Friday in Switzerland following weeks of mixed messaging from both Washington and Tehran on the trajectory of the conflict. With no official terms yet released, exact details of the deal are not clear.<\/p>\n
The U.S. dollar hit a 10-day low and global bond yields eased, helping gold prices rally more than 2 percent to $4,313 an ounce in Asian trading ahead of a slew of central bank meetings slated for the week.<\/p>\n
Brent crude futures slumped over 4 percent toward $83 a barrel, well off the May peak of $126.41 a barrel after Trump said the tentative deal included opening the vital Strait of Hormuz without giving further details.<\/p>\n
China’s Shanghai Composite Index jumped 1.61 percent to 4,096.47, while Hong Kong’s Hang Seng Index ended half a percent higher at 24,842.67.<\/p>\n
Shares of Knowledge Atlas Technology, the listed entity behind Chinese AI model developer Zhipu, soared 33 percent after JPMorgan reportedly maintained its overweight rating on the stock, citing the firm’s model visibility and its pricing power in a fiercely contested market.<\/p>\n
Japanese markets<\/span> soared as geopolitical tensions eased, the yen weakness persisted and government bond yields tumbled before a Bank of Japan policy meeting. The central bank is widely expected to raise its benchmark interest rate to the highest level since 1995 at the conclusion of a two-day meeting on June 16.<\/p>\n The Nikkei 225 Index spiked 5 percent to 69,317.50, breaking above the 69,000 level for the first time in history. The broader Topix Index settled 3 percent higher at 3,999.60.<\/p>\n Semiconductor and other tech stocks topped the gainers list, with Advantest, Tokyo Electron and SoftBank Corp rallying 7-10 percent.<\/p>\n Taiyo Yuden, a materials and electronics company, surged 22.6 percent, Ibiden soared over 19 percent and Murata Manufacturing added 17.6 percent.<\/p>\n Seoul stocks rose sharply to end higher for a third day running on the back of falling government bond yields and plunging oil prices.<\/p>\n The Kospi Index soared 5.2 percent to 8,545.98, with chip manufacturers leading the rally. Samsung Electronics, SK Square and SK Hynix surged 4-6 percent.<\/p>\n LG Electronics shot up 11.2 percent after reports that the company is developing a custom Arbitrum layer-2 blockchain network to automate and optimize the global advertising market.<\/p>\n Earlier in the day, the country’s bourse operator triggered a circuit breaker, suspending program trading for five minutes after KOSPI 200 Index futures rose 5 percent.<\/p>\n Australian markets hit an eight-week high, led by mining and gold stocks. Woodside Energy shares plunged 5.7 percent after the company said it is not in discussions with Exxon Mobil regarding a potential acquisition.<\/p>\n The benchmark S&P\/ASX 200 Index rallied 1.3 percent to 8,914, while the broader All Ordinaries Index closed up 1.4 percent at 9,128.<\/p>\n Across the Tasman, New Zealand’s benchmark S&P\/NZX-50 Index slipped 0.3 percent to 13,360.59, giving up earlier gains. Heavyweight Fisher & Paykel Healthcare tumbled 3.3 percent and Meridian Energy lost 2.5 percent.<\/p>\n Europe<\/b><\/p>\n European stocks have moved notably higher on Monday, extending gains from the previous session after U.S. President Donald Trump and Iranian leaders said a deal has been reached to end more than 100 days of war. World leaders welcomed the emerging agreement and urged its swift implementation.<\/p>\n In remarks delivered during a monetary policy conference in Frankfurt, European Central Bank (ECB) Governing Council member Joachim Nagel stated that it will take months for global oil supply to normalize following recent disruptions.<\/p>\n In economic news, Destatis reported that German wholesale prices increased 5.9 percent year-on-year in May after rising 6.3 percent in April due to the reduction in the energy tax on mineral oil products.<\/p>\n The German DAX Index is up by 1.4 percent and the French CAC 40 Index is up by 1.3 percent, although the U.K.’s FTSE 100 Index is only just above the unchanged line.<\/p>\n Airline and luxury stocks were among the prominent gainers, while energy stocks slumped as Brent crude futures tumbled over 4 percent toward $83 a barrel, hitting a three-month low.<\/p>\n Bayer AG has moved to the upside after its low-dose Gadoquatrane received FDA approval<\/span> in the U.S.<\/p>\n Schneider Electric has also rallied after it announced a partnership with Foxconn for AI data centers.<\/p>\n Meanwhile, Frasers Group has dropped after it launched an all-cash takeover offer for Accent Group.<\/p>\n U.S. Economic News<\/b><\/p>\n After posting strong growth last month, New York manufacturing activity increased modestly in the month of June, according to a report released by the Federal Reserve Bank of New York on Monday.<\/p>\n The New York Fed said its general business<\/span> conditions index plunged to 5.7 in June after jumping to 19.6 in May, although a positive reading still indicates growth. Economists had expected the index to fall to 12.5.<\/p>\n Looking ahead, the New York Fed said firms maintained a fairly optimistic outlook for business activity, but the index for future conditions fell to 30.1 in June from 33.5 in May.<\/p>\n At 9:15 am ET, the Federal Reserve is scheduled to release its report on industrial production in the month of May. Industrial production is expected to rise by 0.2 percent in May after climbing by 0.7 percent in April.<\/p>\n The National Association of Home Builders is due to release its report on homebuilder confidence in the month of June at 10 am ET. The housing market index is expected to edge down to 36 in June from 37 in May. <\/p>\n<\/p>\n<\/div>\n