Traders work on the floor of the New York Stock Exchange (NYSE) in New York City.
Spencer Platt | Getty Images
Stock futures are rising Sunday night to kick off the holiday-shortened trading week after President Donald Trump announced that an agreement had been reached to end the war between the U.S. and Iran.
Futures tied to the Dow Jones Industrial Average added 342 points points, or 0.7%. S&P 500 futures climed 0.9%, while Nasdaq 100 futures popped 1.4%.
Trump said late Sunday on social media that the deal with Iran was “now complete.” Pakistan Prime Minister Shehbaz Sharif said an official signing ceremony would take place on Friday in Switzerland.
Trump also said he authorized the reopening of the key Strait of Hormuz passageway, sending oil prices tumbling on Sunday. U.S. crude fell nearly 5%.
Trump’s announcement came after an exchange of fire between Israel and the Tehran-backed Hezbollah in Lebanon raised uncertainty over whether the deal would get across the finish line on Sunday.
The three major U.S. stock averages are coming off a winning week. Trader sentiment was bolstered on Friday by SpaceX‘s record-setting initial public offering.
SpaceX ended Friday with a market cap above $2 trillion after a climb of more than 19%. The rocket company’s stock rose more than 3% in extended trading after Friday’s market close.
“A successful SpaceX IPO is generally a positive signal for broader investor interest in innovation and technology,” said Evan Schlossman, principal at SuRo Capital. “It’s a reflection of the demand, interest, and desire to invest in these types of companies.”
Investors are watching for economic data on housing and retail sales this week. They will also closely monitor the Federal Reserve policy meeting, which Fed funds futures indicate has a more than 98% chance of ending with rates unchanged, according to CME’s FedWatch tool.
The stock market will be dark on Friday in observance of the Juneteenth holiday.
