US stock futures rose sharply on Monday as sentiment improved amid indications that the US and Iran are moving closer to an agreement that could reopen the Strait of Hormuz, helping to ease worries about inflation and further interest rate hikes. However, negotiations on key terms are still underway, and final approval from both sides may take several more days.
With US markets closed for a public holiday, trading volumes are expected to remain muted. Last week, the Dow climbed 2.13%, the S&P 500 advanced 0.88%, and the Nasdaq Composite gained 0.45%, buoyed by optimism over Middle East peace efforts and another strong set of corporate earnings.
Investors are now focusing on upcoming US economic releases, including PCE inflation, GDP, and personal income and spending data, as well as earnings reports from companies such as Zscaler, Salesforce, and Dell Technologies.
