US equity futures surged on Monday after the United States and Iran announced an agreement to end their conflict and restore energy exports from the Middle East. S&P 500 futures rose 1.3%, Nasdaq 100 contracts jumped 2%, and Dow futures gained 1%.
The deal, scheduled to be signed on Friday, reportedly includes Iran clearing mines from the Strait of Hormuz and the lifting of naval blockades on all exports from the region. As a result, energy prices and bond yields declined, improving the macroeconomic backdrop for corporates and bolstering risk appetite, particularly in heavyweight technology names. Nvidia, Amazon, and Oracle were each up around 2% in premarket trading.
Meanwhile, [company name] was 6% higher premarket, extending momentum after a 20% jump on its IPO debut in the previous session. Semiconductor stocks continued to rally, supported by increased fundraising by AI developers and the resulting influx of orders for AI infrastructure companies. In contrast, defensive sectors underperformed.
