FX.co ★ US Futures Rise on Ceasefire Hopes

S&P 500 and Nasdaq 100 futures rose on Monday, reversing earlier declines as sentiment improved on renewed hopes for a ceasefire in the Middle East. The US, Iran, and a group of regional mediators are reportedly working on the terms of a potential 45-day truce that could lay the groundwork for a more durable resolution to the conflict.

This change in tone follows President Donald Trump’s decision to set a new deadline for Iran, coupled with stepped-up threats against its power plants and other civilian infrastructure if the Strait of Hormuz is not reopened. US equities had previously come under heavy pressure as the conflict drove energy prices sharply higher, stoking speculation that the Federal Reserve might delay interest-rate cuts and could even raise borrowing costs this year if inflation remains elevated.

Investors are now turning their attention to the latest Federal Open Market Committee minutes for additional insight into the central bank’s policy outlook.