Market movements follow geopolitical developments
Futures rebounded from a post-Federal Open Market Committee selloff, while oil prices declined as markets priced in the prospect of an Iran deal for another day.
Treaty details and location
The United States signed a Memorandum of Understanding with Iran two days earlier than anticipated. According to Zerohedge, this signing reportedly aimed to end war in the Middle East and facilitate energy shipments through the Strait of Hormuz.
The ceremony took place at the Palace of Versailles.
Stock market performance
As of 8:00am ET, S&P futures were up 0.6%. This movement occurred while prices remained below overnight session highs. The advance partly unwound a decline exceeding 1% that followed comments from Kevin Warsh.
Kevin Warsh signaled the Federal Reserve may need to raise interest rates this year to contain inflation.
Technology sector gains
The Nasdaq gained 1.3%. In pre-market trading, all Mag 7 stocks were higher. The leaders included Amazon with a gain of 1.2%, Meta at 1.1%, and Nvidia at 1.1%.
Intel shares jumped more than 8% in premarket trading after President Trump stated the firm struck a chipmaking deal with Apple.
Bond yields
Bond yields were lower, led by the long-end of the curve. The two-year yield decreased by one basis point and the ten-year yield decreased by four basis points.
The ten-year Treasury traded at 4.46%.
Currency fluctuations
The US Dollar Index added 53 basis points this morning, continuing a climb attributed to market conditions described in reports from Zerohedge.
Commodity prices and metals
Brent crude slid 1.4% to approximately $78.50 per barrel. This level touched the lowest point since the start of the war.
West Texas Intermediate fell 2.6% to $74.78. Precious metals were largely flat this morning.
Economic calendar
The US economic data calendar includes weekly jobless claims, the June Philadelphia Fed business outlook at 8:30am ET, the May Leading Index at 10am ET, and April TIC flows at 4pm ET.