Global markets are experiencing a significant rally following President Donald Trump’s announcement of a peace deal to end the conflict between the U.S. and Iran. U.S. stock futures, including the Dow, S&P 500, and Nasdaq 100, are all up, while Asian and European indices, such as Japan’s Nikkei 225 and South Korea’s Kospi, have surged.
The agreement includes the toll-free reopening of the Strait of Hormuz, causing oil prices to tumble, while SpaceX’s recent IPO also contributes to positive market sentiment.
U.S. stock futures are soaring this Monday, kicking off a holiday-shortened trading week with significant gains after President Donald Trump announced a groundbreaking agreement to conclude the conflict between the U.S. and Iran.
Futures tied to the Dow Jones Industrial Average climbed 1.02%, while S&P 500 futures rose 1.24%. Tech-heavy Nasdaq 100 futures led the charge, popping an impressive 1.98%.
The positive sentiment resonated across Asia-Pacific markets as well. South Korea's Kospi surged 5.56%, with the small-cap Kosdaq up 0.74%. Japan's Nikkei 225 advanced 4.90%, and the Topix gained 3.32%. Hong Kong's Hang Seng Index saw a 0.45% increase, while mainland China's CSI 300 rose 1.47%. However, Hong Kong Hang Seng index futures were noted slightly lower than its last close, at 24,706 compared to 24,718.10.
President Trump confirmed the deal's completion late Sunday via social media, stating that an official signing ceremony is scheduled for Friday in Switzerland, as announced by Pakistan Prime Minister Shehbaz Sharif, who mediated the agreement.
A significant part of the deal includes the authorization to reopen the crucial Strait of Hormuz passageway without tolls, leading to an immediate downturn in oil prices. U.S. crude futures plummeted nearly 5% following the news.
This breakthrough came amidst heightened tensions, following an exchange of fire between Israel and Tehran-backed Hezbollah in Lebanon, which had briefly cast doubt on the deal's finalization.
The three major U.S. stock averages concluded the previous week on a high note, bolstered by SpaceX's record-setting initial public offering. SpaceX closed Friday with a market capitalization exceeding $2 trillion after a more than 19% jump.
Evan Schlossman, principal at SuRo Capital, highlighted the significance of the IPO: “A successful SpaceX IPO is generally a positive signal for broader investor interest in innovation and technology. It’s a reflection of the demand, interest, and desire to invest in these types of companies.”
Investors are now looking ahead to this week's economic data releases on housing and retail sales, alongside the Federal Reserve's policy meeting. Fed funds futures suggest a more than 98% probability that rates will remain unchanged, according to CME's FedWatch tool.
The U.S. stock market will observe the Juneteenth holiday on Friday.
European Stocks Surge as US-Iran Breakthrough Spurs Rally
European markets mirrored the global enthusiasm, with the pan-European Stoxx 600 index rising 1.2% at Monday's open. France's CAC 40 led the gains with a 1.9% increase, followed by Germany's DAX, up 1.8%. Italy's FTSE MIB added 1.4%, and the U.K.'s FTSE 100 gained 0.8%, influenced by a dip in energy stocks. Most regional sectors saw comfortable increases, with carmakers soaring 3.7%, construction companies spiking 3.2%, and travel and leisure stocks advancing 2.8%.
SoftBank Jumps 12% Amid Broad Asian Tech Stock Gains
Asian technology stocks surged Monday, as investors celebrated the U.S.-Iran peace deal. Japanese tech giant SoftBank was a top performer, rising over 12%. Other major Japanese tech players, Tokyo Electron and Advantest, also saw significant gains of 9.19% and 7.69%, respectively. In South Korea, memory chip behemoths Samsung Electronics and SK Hynix, key components of the Kospi Index, gained 4.65% and 6.42%. Meanwhile, Taiwan Semiconductor Manufacturing Co (TSMC) rose 2.16%, and Hon Hai Precision (Foxconn) added 2.5%.
South Korea’s Kospi Leads Asia as Markets React to Iran-U.S. Peace Deal
Asia-Pacific markets began Monday trading higher, with South Korea’s Kospi leading regional advances, jumping over 4% at open. The small-cap Kosdaq also gained 2.34%. Japan’s Nikkei 225 added 3.51%, and the Topix rose 2.43%. Australia’s benchmark S&P/ASX 200 was up 1.49%.
Asia-Pacific Markets Set for Higher Open as U.S. and Iran Reach Peace Deal
Anticipation of the U.S.-Iran peace deal set Asia-Pacific markets for a broadly higher open on Monday. Japan's Nikkei 225 was expected to rise, with its Chicago futures contract at 68,355, notably higher than its previous close of 66,020.40. Australia's S&P/ASX 200 futures traded at 8,853, compared to Friday’s close of 8,804. Hong Kong’s Hang Seng index futures were at 24,706, slightly below its last close of 24,718.10.
Both Iran and the U.S. have agreed to a deal that includes the immediate and permanent termination of military operations, as stated by Pakistan's Prime Minister Shehbaz Sharif. The official signing ceremony is planned for Friday, June 19, in Switzerland. In a Truth Social post, Trump declared the deal complete, authorizing the toll-free reopening of the Strait of Hormuz and the immediate removal of the U.S. naval blockade, encouraging "Ships of the World, start your engines. Let the oil flow!"
SpaceX Perpetual Futures Surge Ahead of Stock Futures
Crypto traders, often anticipating traditional market movements, pushed SpaceX perpetual futures higher Sunday evening. The SpaceX perpetual futures market on Hyperliquid saw a rapid ascent from approximately $166 to over $180 before stabilizing. This surge, potentially amplified by a short squeeze, reflected strong confidence in SpaceX following its successful Friday debut.
SpaceX IPO Draws Unprecedented Retail Investor Interest
The initial public offering (IPO) of SpaceX attracted the highest retail investor buy-in in recent history, according to VandaTrack. Individual investors purchased around $118 million worth of SpaceX shares during the session, with the company accounting for over half of all net buying for single stocks. Despite this, Vanda noted that retail traders simultaneously offloaded other top-performing stocks from earlier in the year, such as Micron, Marvell, and Robinhood. Overall, last week marked the weakest net retail buying since March 2020, indicating that the SpaceX IPO was a unique event that did not universally lift all retail investment tides. SpaceX debuted at $150 per share on Friday, an 11% gain over its $135 IPO price, ultimately closing up over 19%, pushing its market cap past $2 trillion.
Oil Prices Tumble After Trump Announces Strait of Hormuz Reopening
Oil prices fell sharply on Sunday after President Donald Trump's announcement of a completed deal with Iran that includes the reopening of the Strait of Hormuz. U.S. crude oil futures dropped 4.8% to $80.80 per barrel, while Brent futures, the international benchmark, traded 3.9% lower at $83.89 per barrel.
Trump Confirms U.S. and Iran Reach Historic Peace Deal
President Donald Trump confirmed on Sunday the completion of a peace deal to end the conflict with Iran. In a social media post, Trump stated, "The Deal with the Islamic Republic of Iran is now complete. Congratulations to all!" He also authorized the immediate, toll-free opening of the Strait of Hormuz and the removal of the U.S. Naval blockade, urging, "Ships of the World, start your engines. Let the oil flow!"
Stock Futures Begin Week on a High Note
Stock futures showed significant gains Sunday night, with Dow futures adding 0.6% shortly after 6 p.m. ET. S&P 500 and Nasdaq 100 futures also jumped, rising 0.7% and 0.8%, respectively.
