US Stock Futures Rise as Iran’s Crude Oil Prices Drop – US Market Wrap

Global markets surged to new highs as crude oil plummeted, as authorities said the US was close to reaching an agreement with Iran to reopen the Strait of Hormuz and restore oil flows. The dollar weakened.
Futures for the S&P 500 rose 1%, while those for the Nasdaq 100 rose 1.4%. The US cash markets will be closed on Monday in observance of Memorial Day. The dollar fell versus all of its Group of 10 counterparts. The MSCI All Country World Index, the broadest measure of global equities, increased 0.5% to a record closing level. Europe’s benchmark Stoxx 600 rose for the sixth straight session, closing at its highest level since the start of the Iran war. Trading volumes were minimal since many markets, including the United Kingdom, Switzerland, Norway, and Denmark, were closed for the holidays.
WTI crude fell more than 6% to roughly $90 per barrel as investors hoped a settlement would help restore oil flow through the critical Middle Eastern artery. Negotiations with Iran, according to US President Donald Trump, are “proceeding nicely.” Meanwhile, an Iranian delegation came to Doha to meet with senior Qatari officials on the talks, including the release of frozen Iranian funds.
The increase in risk sentiment comes after weeks of impasse between the United States and Iran following multiple previous attempts to reach an agreement. Global shares have subsequently climbed on hopes that Middle East tensions will relax and increased interest in the artificial intelligence sector, while rising oil prices and inflation have driven bond yields to multi-year highs.