US stock futures rallied on Monday after investors welcomed a breakthrough agreement aimed at ending the conflict between the US and Iran and reopening the Strait of Hormuz. The deal, scheduled to be signed in Switzerland on June 19, reportedly provides for the lifting of blockades, sanctions relief for Iran, and the dismantling of Tehran’s nuclear program.
Oil prices fell to a two-month low following the announcement, easing concerns about rising inflation and the risk of further interest rate hikes. Dow and S&P 500 futures gained more than 1%, while Nasdaq 100 futures advanced over 2%. The major indexes are also coming off a strong week, with sentiment buoyed by SpaceX’s record-breaking IPO on Friday. The company ended the session with a market capitalization above $2 trillion after surging more than 19%, underscoring robust investor demand for high-profile growth stocks.
