US Stock Futures Climb as Trump Brokers Israel-Iran Ceasefire
U.S. stock futures saw a sharp rise on Tuesday following former President Donald Trump’s announcement of a ceasefire between Israel and Iran. The 12-day conflict had spooked global markets and driven inflation fears higher. Investors welcomed the news as a sign of geopolitical stabilization, driving the Dow, S&P 500, and Nasdaq futures up by 0.76%, 0.88%, and 1.15% respectively.
The ceasefire led to a decline in oil prices to two-week lows as supply fears subsided. Consequently, energy stocks such as Chevron and Exxon Mobil slipped in premarket trading. Defense stocks also declined, with Lockheed Martin and RTX Corp each dropping around 1.6%, reflecting reduced expectations for military escalation in the region.
Despite the ceasefire announcement, tensions remained high. Israel accused Iran of firing missiles post-agreement and retaliated with strikes on Tehran. Iran denied any violation. Still, the immediate market sentiment remained optimistic, with hopes that full-scale conflict may be avoided.
Market attention is also turning to Federal Reserve Chair Jerome Powell’s upcoming congressional testimony. Investors are watching closely for any signals on interest rate policy, especially after Fed official Michelle Bowman hinted at a possible rate cut as early as July. Additional commentary from other Fed members is expected throughout the day.
Technology and cryptocurrency-related stocks led the gains. Tesla jumped 2.7%, while Alphabet and Amazon rose 1.5% and 1.8%, respectively. Bitcoin reached a one-week high, pushing up Coinbase and MicroStrategy stocks. FedEx also saw a modest 1% uptick ahead of its earnings release, rounding out a broadly positive trading session driven by geopolitical relief and investor anticipation.
Source: Reuters