SPX: S&P 500 Futures Soar Over 1% as Traders Cheer US-Iran Peace Deal

It’s a match! Most likely. Probably. Maybe. Sign off is set for Friday and who knows what may happen until then.

🤝 Peace Deal Sparks Risk-On Rush

• Stock futures kicked off the week with a bang after President Donald Trump announced that an agreement had been reached to end the conflict between the US and Iran. Markets immediately switched from defense mode to offense mode.
• S&P 500 futures jumped 1.2%, Dow futures added 440 points, or 1%. Nasdaq 100 futures stole the spotlight with a nearly 2% gain as traders piled back into growth and technology names. AI picks were leading the pack.
• Asia joined the cheers. South Korea’s Kospi rallied 5.6%, Japan’s Nikkei 225 climbed 5%, and the small-cap Kosdaq added 0.8%. Turns out peace headlines are still one of Wall Street’s favorite catalysts.

🛢️ Oil Drops as Hormuz Reopens

• Trump declared on social media that the deal with Iran was “now complete,” while also authorizing the reopening of the Strait of Hormuz, one of the world's most important energy shipping routes.
• The announcement sent crude prices sharply lower. US oil tumbled nearly 5% as traders quickly priced out some of the supply disruptions that had fueled inflation fears and rattled markets in recent months.
• Lower oil prices weigh tremendously because they can ease pressure on consumers, businesses, and central banks. In market speak, that potentially reduces inflation risks and makes aggressive interest-rate hikes less necessary.

📅 Friday Is the Real Test

• There’s just one catch. We need to go from point A, the announcement, to point B, the signing. Pakistan officials said the official signing ceremony isn't coming until Friday in Switzerland. Until the ink dries, traders may want to keep the champagne on ice.
• The few days in between make room for unexpected twists, political disagreements, or last-minute attacks to emerge. Markets are celebrating first and asking questions second.
• Even so, momentum remains firmly on the bulls’ side. The S&P 500 finished last week up 0.7% and has advanced in 10 of the past 11 weeks, bringing its 2026 gain to 8.6%. The Nasdaq has risen in 9 of the last 11 weeks and is now up 11.4% for the year.