Futures tied to the Dow Jones Industrial Average rose about 0.5%, or more than 240 points. S&P 500 futures gained 0.8%, while Nasdaq-100 futures climbed around 1.2%, recovering some of last week’s losses driven by a broad sell-off in technology stocks.
Investor sentiment improved after reports that Washington and Tehran had agreed to halt retaliatory attacks that intensified over the weekend, allowing negotiations between the two sides to continue.
A US official told CNBC that both countries had agreed to pause hostilities for now, while commercial shipping through the Strait of Hormuz would continue uninterrupted, easing concerns over disruptions to global oil supplies.
The gains came after a volatile week for Wall Street, when geopolitical uncertainty weighed heavily on risk assets, particularly technology stocks.
In premarket trading, Arm Holdings rose about 1.9%, Marvell Technology gained 1.6%, and Intel advanced 1.1%, reflecting renewed buying interest in semiconductor stocks.
SpaceX was also set for gains of around 2% after Nasdaq announced last week that the satellite company would be fast-tracked into the Nasdaq-100 Index next month.
Shares of Comcast jumped 23% in premarket trading after the company said it would separate its media and technology businesses into two publicly traded companies, with the transaction expected to be completed over the next year.
In commodities, oil prices edged higher as markets assessed whether the pause in hostilities between the US and Iran would hold. Brent crude rose 0.67% to $72.47 a barrel, while West Texas Intermediate (WTI) crude gained 1.2% to $70.06 a barrel.
Investors are now awaiting the June nonfarm payrolls report, scheduled for release on Thursday, a day earlier than usual due to the US Independence Day holiday on Friday. The employment data is expected to provide fresh clues on the strength of the labour market and the Federal Reserve’s interest rate outlook.
