Key Highlights
- Washington and Tehran reach preliminary ceasefire agreement, with official ceremony planned for Friday in Switzerland
- Nasdaq 100 futures soared 2.2%, S&P 500 futures gained 1.3%, Dow futures advanced 1%
- Brent crude plummeted nearly 5% to approximately $83 per barrel as supply fears ease
- Bitcoin surged 2.2% to reach $65,810 amid improved risk appetite across markets
- Fox Corporation’s $22 billion Roku acquisition sent Fox shares tumbling 10% in pre-market activity
Equity futures experienced substantial gains Monday morning following a weekend breakthrough in which Washington and Tehran agreed to a preliminary ceasefire arrangement. The diplomatic progress is anticipated to restore access to the Strait of Hormuz, a critical chokepoint for international petroleum transport.
President Trump disclosed the agreement Sunday evening via Truth Social, characterizing it as “complete.” The official signing ceremony is set for Friday in Switzerland. Trump explained that the interval before the signing allows for the removal of mines from the Strait of Hormuz.
According to Deutsche Bank’s Jim Reid, negotiations had stretched across 107 days. “The fizz is staying in markets this morning,” Reid observed, noting the news received an enthusiastic reception despite Friday’s already robust Wall Street performance.
Nasdaq 100 futures spearheaded the rally with a 2.2% advance. S&P 500 futures increased 1.3% while Dow Jones futures posted gains around 1%. The three benchmark indexes had already registered positive closes Friday as market participants anticipated diplomatic progress.
Crude Markets Plunge on Renewed Supply Optimism
Oil prices experienced sharp declines following the announcement. Brent crude collapsed nearly 5% to roughly $83 per barrel. West Texas Intermediate dropped over 5%, maintaining a position just above $80 per barrel. Market participants are anticipating that reopening the Strait of Hormuz will alleviate supply constraints that had elevated prices.
The strategic waterway could resume tanker traffic within days. Nevertheless, industry experts project that normalizing shipping operations completely may require several months. Maritime companies and vessel operators maintain a cautious stance given limited specifics about the agreement’s provisions.
Cryptocurrency and Broader Market Response
Bitcoin advanced 2.2% during the previous 24-hour period to $65,810. The digital asset’s movement mirrors broader risk-on sentiment triggered by the ceasefire announcement.
The US dollar weakened 0.2% versus a basket of major global currencies as investors reduced safe-haven positioning. The benchmark 10-year Treasury yield declined 5 basis points to 4.44%.
Gold attracted buying interest as declining petroleum prices redirected investor attention. Japan’s Nikkei index achieved a record peak on the diplomatic developments.
Wall Street also carries forward momentum from SpaceX’s market debut Friday. The company’s shares climbed over 5% in premarket action Monday, following a spectacular 19% surge during their initial trading session that propelled market capitalization beyond $2 trillion.
Regarding corporate activity, Fox Corporation unveiled plans to acquire Roku for $22 billion. Fox shares declined approximately 10% in pre-bell trading. Roku shares increased 1.4%, extending Friday’s impressive 20% rally.
Federal Reserve Policy Meeting Looms
Attention now shifts to the Federal Reserve, scheduled to deliver its interest rate determination Wednesday. Market pricing indicates a 98% probability of rates remaining steady, according to CME FedWatch metrics.
Persistent elevated inflation data has sustained discussion regarding a potential rate increase later in 2025. The Fed’s announcement represents the week’s pivotal market catalyst.
Both the NYSE and Nasdaq will observe closure Friday for the Juneteenth holiday.
