S&P 500 and Bitcoin futures surge after US-Iran agreement.
- US-Iran agreement favors Bitcoin and global markets.
- Falling oil prices reduce tension on the global economy.
- Wall Street moves forward with the reopening of the Strait of Hormuz.
Global markets began the week on an optimistic note following the announcement of an agreement between the United States and Iran to end the four-month-long conflict. The news eased investor concerns about energy supplies and boosted risk assets, including stocks and cryptocurrencies.
Futures contracts for major Wall Street indexes registered strong gains in Sunday night trading. The move came shortly after details of the agreement between the two countries were released and expectations arose for the reopening of the Strait of Hormuz, one of the most important routes for global oil transport.
Market figures reinforced the positive sentiment. S&P 500 futures advanced to 7.492,25 points, up 0,77%, while Dow Jones futures rose 0,58% to 51.904 points. Nasdaq futures led the gains among the major US indices, rising 1,23% to 30.026,50 points.
The Russell 2000 index, which tracks smaller-cap companies, rose 1,47% to 2.990,20 points. At the same time, the VIX volatility index fell 9,05% to 17,68 points, indicating reduced investor apprehension about the upcoming trading days.
In the commodities market, gold rose 1,51%, trading at US$4.302,90. Meanwhile, crude oil for July delivery fell 4,61% to US$80,97 per barrel, reflecting expectations of a normalization of global energy flows following the agreement.
Among digital assets, Bitcoin advanced 1,95%, trading at US$65.679,11. The appreciation of the market's leading cryptocurrency followed the improvement in investor sentiment, who returned to seeking higher-growth assets in the face of reduced geopolitical tensions.
The current president of the United States, Donald Trump, announced on his social media that the agreement with Iran had been finalized. According to the American government, the understanding provides for the reopening of the Strait of Hormuz and the end of naval restrictions imposed by the US in the region.
“The deal with the Islamic Republic of Iran is now complete,” President Trump wrote on Truth Social. “I fully authorize the opening of the Strait of Hormuz without tolls and, simultaneously, authorize the immediate removal of the United States naval blockade. Ships of the world, start your engines. Let the oil flow!”
Trump later added that the reopening of the waterway should occur on Friday, allowing for mine clearance operations and the full resumption of commercial shipping.
On the Iranian side, Deputy Foreign Minister Kazem Gharibabadi stated that a peace agreement had been reached between the two countries. According to him, negotiations for a definitive and lasting treaty should begin within the next 60 days.
The fall in oil prices was one of the most immediate reactions to the announcement. With the prospect of reduced risks of disruption to global supply, investors lowered their bets on a surge in energy prices, contributing to the advance of stock markets.
In addition to geopolitical developments, investors are following the week's economic agenda and awaiting the Federal Reserve's next monetary policy decision. Data from CME FedWatch indicates that the market assigns a probability greater than 98% to maintaining current interest rates.
Another topic that remains on Wall Street's radar is SpaceX's stock market debut. The company's shares soared more than 19% in its first trading session, raising its market value to over US$2 trillion. The shares also registered additional gains in extended trading, reinforcing investor interest in technology and growth companies.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Trump publicly calls Jensen Huang: The "AI danger theory" is a fraud, data center importance surpasses the internet
During his speech at the All-In Summit in Los Angeles, Nvidia CEO Jensen Huang received a call from Trump and put it on speaker. Trump dismissed the dangers of AI as a "scam" and compared data centers to "the oil of the next twenty or thirty years," claiming their importance "exceeds that of the internet." Jensen Huang immediately expressed agreement, stating that he "won't let (an AI slowdown) happen." However, these strong statements failed to boost the market, as Nvidia's stock fell by 3.4% that day, with tech stocks overall trending lower.
Claude AI Predicts Bitcoin Price as Strive Adds Another 469 BTC
US and European interest rate trends may diverge! Citadel Securities: Energy shocks and high interest rates may increase downward pressure on the European economy
Castle Securities believes that although energy price shocks and the tightening of monetary policy by the European Central Bank have driven European bond yields to continue rising, these two forces may ultimately also act as factors limiting further increases in yields.
Bank of America (BAC.US) once plunged 6% as CEO sends cautious signal: Q3 trading revenue expected to be flat year-over-year, investment banking fee income may fall short of expectations
Bank of America CEO Brian Moynihan stated that the bank's trading revenue for the third quarter is expected to be "roughly flat" compared to the same period last year, indicating that after strong growth in the first half of the year, the growth momentum of Wall Street trading businesses is slowing down.
Crypto prices
More
