Dow, S&P 500, Nasdaq futures jump on Fed rate outlook
US stock futures jumped on Thursday, with technology stocks leading gains as investors digested the signing of an interim US-Iran peace deal and the latest Federal Reserve decision on interest rates, News.Az reports, citing Yahoo Finance.
Contracts on the tech-heavy Nasdaq 100 (NQ=F) surged 1.5%, while S&P 500 (ES=F) futures rose 0.8%.
Dow Jones Industrial Average futures (YM=F) gained 0.5%, recovering from sharp losses in the previous Wall Street session.
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President Trump and his Iranian counterpart signed the memorandum outlining the peace agreement on Wednesday, earlier than the previously expected Friday timeline. The deal took effect on Thursday and could accelerate the reopening of the Strait of Hormuz to commercial shipping while potentially easing sanctions on Iranian oil. Negotiations on longer-term issues, including Iran’s nuclear program, are expected to continue over the next 60 days.
Oil prices fell more than 2% following the announcement. Brent crude futures (BZ=F) dropped below $78 per barrel, while West Texas Intermediate slid toward $74. Brent is now close to erasing its war-driven gains and is on track for a second consecutive weekly decline.
Meanwhile, investors continued to assess the Federal Reserve’s policy outlook after officials signaled that an interest rate hike could still be on the table later this year, despite holding rates steady in Wednesday’s decision.
The central bank’s hawkish stance comes as inflation remains elevated and the labor market stays resilient amid geopolitical tensions involving Iran. Markets are also awaiting fresh labor data with the release of weekly jobless claims.
Thursday marks the final trading day of the week for US markets, which will close on Friday in observance of the Juneteenth holiday.
By Nijat Babayev
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