The U.S. and Iran electronically signed a 14-point Memorandum of Understanding on Wednesday, extending their ceasefire and establishing a framework for a peace agreement.
- The deal outlines a 60-day negotiation period, which can be extended, to finalize a broader settlement.
- Meanwhile, the Federal Reserve left interest rates unchanged in Kevin Warsh’s first policy meeting as chair amid persistent inflation and a strong labor market.
- Oil prices declined in the overnight session late Wednesday after the U.S. and Iran signed the peace deal electronically.
U.S. stock futures rose in the overnight session late Wednesday after Washington and Tehran confirmed that they had signed an electronic agreement to end the conflict between the countries, offsetting concerns sparked by the Federal Reserve’s indication that a rate hike remains possible this year.
Dow futures were up 0.58%, S&P 500 futures gained about 0.81%, and the Nasdaq 100 futures traded 1.32% higher as of 9.43 p.m ET.
Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY), the Invesco QQQ Trust (QQQ) and the SPDR Dow Jones Industrial Average ETF Trust (DIA) all climbed higher amid ‘bullish’ sentiment at the time of writing.
The iShares 20+ Year Treasury Bond ETF (TLT) was trading up about 0.29% amid ‘neutral’ sentiment at the time of writing.
How Did US Markets Fare On Wednesday?
The Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite all closed lower on Wednesday on rate hike concerns in 2026 following the Fed’s policy meeting.
The Dow shed more than 500 points, closing down 0.98%. Meanwhile, the S&P 500 was down 0.57% at close, and the Nasdaq index fell 1.34%.
| Index | Move | Close |
| Dow Jones Industrial Average | -0.98% | 51,492.55 |
| S&P 500 | -1.21% | 7,420.10 |
| Nasdaq Composite | -1.34% | 26,021.66 |
US Market Drivers
Markets are turning optimistic about a more permanent solution to the conflict in the Middle East after the U.S. and Iran have electronically signed a 14-point Memorandum of Understanding (MoU) that extends their ceasefire and establishes a framework for a peace agreement.
The deal outlines a 60-day negotiation period, which can be extended, to finalize a broader settlement. As part of the deal, the U.S. will begin lifting its naval blockade of Iran and restore pre-war military deployments within 30 days. Iran, in turn, will facilitate the reopening of the Strait of Hormuz, allowing commercial shipping to resume without transit fees.
The agreement also reportedly outlines plans for a $300 billion reconstruction and development framework for Iran, backed by regional partners, while paving the way for the eventual removal of U.S. and international sanctions. It also provides for the phased release of Iran’s frozen assets.
The final deal is scheduled to be officially signed on Friday by Vice President JD Vance and Iranian Parliament Speaker Mohammad Bagher Ghalibaf in Switzerland.
Meanwhile, the Federal Reserve left interest rates unchanged at Kevin Warsh’s first policy meeting as chair amid persistent inflation and a strong labor market, with rising energy prices linked to the Iran conflict adding to price pressures.
Updated projections showed officials now expect one rate hike in 2026, with the median federal funds rate forecast rising to 3.8%, up from 3.4% in March. The Fed also raised its year-end inflation outlook, projecting headline PCE inflation at 3.6% and core inflation at 3.3%.
“The Fed held rates steady but spoiled the mood with a much more hawkish dot plot. Elevated inflation makes that understandable, but the committee is far from united, with only about half still penciling in rate hikes later this year,” Sonu Varghese, chief macro strategist at Carson Group, reportedly told CNBC.
“The bigger point is that policy still looks loose for an economy where inflation remains a problem, and the labor market is stabilizing.”
Trending Stocks To Watch
Rumble Inc. (RUM): Shares of the company surged more than 18% in the overnight session after it announced its rebranding to RUM Group Inc. and renamed its cloud division Quake AI following the completion of its acquisition of Northern Data.
Intel Corp. (INTC): The legacy chip maker has garnered significant attention after announcing that it has begun production of its advanced 18A-P chip process. Bernstein analyst Stacy Rasgon raised the price target on Intel to $100 from $65 earlier on Wednesday, while CNBC’s Jim Cramer believes the stock still has room to run, even after surging nearly 240% this year.
Netflix Inc. (NFLX): Shares of the streaming company are on track for a fourth consecutive month of declines amid a series of failed acquisition attempts, including its latest unsuccessful bid for Roku Inc. (ROKU).
Rackspace Technology Inc. (RXT): Shares of the company closed up more than 21% on Wednesday, extending the rally overnight after an RBC Capital report highlighted the company’s partnership with Advanced Micro Devices (AMD) as a key growth catalyst.
Global Market Trends
Oil prices declined in the overnight session late Wednesday after the U.S. and Iran signed the peace deal electronically. At the time of writing, Brent crude futures expiring in August were down about 1.46% to trade at around $78.39 a barrel, while WTI crude futures expiring in July fell 1.59%, trading around $75.57 a barrel.
Meanwhile, yields on the 10-year Treasury were at 4.463%, and gold prices climbed to around $4,319.96 an ounce.
Asian markets were trading mixed at the open on Thursday. South Korea’s KOSPI hit a fresh record high in the intraday session, climbing to 8,976.55. Meanwhile, Japan’s Nikkei 225 was up about 1.85% at the time of writing. China’s SSE Composite index and Australian stocks were edging lower at the open.
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