US Stock Futures Rise as US-Iran Ceasefire Hopes Boost Market Sentiment

U.S. stock index futures moved higher late Sunday as investors reacted positively to reports that the United States and Iran had agreed to suspend recent military hostilities and resume diplomatic negotiations, easing fears of a broader conflict in the Middle East and reducing concerns over disruptions in the Strait of Hormuz.

S&P 500 Futures climbed 0.5% to 7,435.0, while Nasdaq 100 Futures also gained 0.5% to 29,514.75. Dow Jones Futures advanced 0.3% to 52,369.0 during early Asian trading, reflecting renewed optimism across global financial markets.

Market sentiment improved after reports indicated that Washington and Tehran had agreed to halt military actions and restart negotiations in Doha, Qatar. The diplomatic breakthrough followed several days of heightened tensions after renewed attacks around the Strait of Hormuz, one of the world's most important energy shipping routes.

Over the weekend, U.S. forces launched strikes against Iranian military and surveillance facilities after a commercial tanker was attacked in the strategic waterway, raising fears of supply disruptions. President Donald Trump warned that the United States would be prepared to "militarily complete the job" if attacks continued against U.S. interests or international shipping.

Iran reportedly responded by launching missile and drone attacks targeting U.S. military facilities in Bahrain and Kuwait while warning that additional American strikes could jeopardize ongoing diplomatic efforts. Despite the escalation, both countries are now expected to meet in Doha on Tuesday in an effort to reduce tensions and address key regional security issues.

The latest negotiations build on an interim peace agreement reached on June 17, which temporarily ended several weeks of escalating military confrontations between the two countries. Investors welcomed the renewed diplomatic engagement, viewing it as a potential step toward stabilizing the region and reducing risks to global energy supplies.

Oil prices edged higher during Asian trading on Monday after falling nearly 10% over the previous week. While crude prices recovered modestly, markets continued to monitor developments surrounding the Strait of Hormuz, through which a significant share of the world's oil exports passes.

Attention is also shifting back to Wall Street after a difficult week for technology stocks. Investors rotated away from high-growth companies amid concerns that artificial intelligence-related shares had become overvalued following months of strong gains.

Last week, the benchmark S&P 500 declined 2.0%, while the Nasdaq Composite dropped 4.6%, marking its weakest weekly performance in more than a year. Technology stocks came under additional pressure after Apple increased prices on several MacBook and iPad models, citing rising memory chip costs fueled by strong demand from AI data centers.

Looking ahead, investors will closely monitor upcoming U.S. economic data, particularly labor market reports, along with second-quarter corporate updates from major companies. These releases are expected to provide fresh insight into the health of the U.S. economy and the outlook for corporate earnings.

With the U.S. Independence Day holiday approaching, trading activity could remain relatively light throughout the week. Nevertheless, geopolitical developments in the Middle East, movements in oil prices, and economic indicators are expected to remain the primary drivers of investor sentiment across U.S. and global financial markets.