A US-Iran peace agreement lifts market sentiment, boosting Fed rate hold probabilities to 47% for December from 28% last week.
US stock futures rallied sharply in early European trading, with Dow Jones futures up over 1% near 51,750. S&P 500 futures rose 1.24% to 7,530, while Nasdaq 100 futures advanced 1.97% to 30,250, driven by a breakthrough US-Iran peace deal set to be signed June 19.
The agreement includes lifting blockades, sanctions relief for Iran, and dismantling Tehran’s nuclear program. Western allies announced plans to lift sanctions following Iran’s nuclear steps, easing oil price pressures and inflation concerns. Markets had closed higher last week, fueled by SpaceX’s $2 trillion market cap debut.
Fed rate expectations shifted, with CME FedWatch showing a 47% chance of unchanged rates in December, up from 28% a week earlier.