Wall Street Expected to Rise as Hopes for Iran Peace Hold – Europe Market Wrap
US share futures rose, while Treasuries climbed, as investors remained optimistic that the recent US strikes on Iran would not derail Middle East peace talks.
S&P 500 futures increased 0.7%, indicating that US equities may rise when the market reopens following the Memorial Day weekend. Nasdaq 100 contracts rose by more than 1% in premarket trade as the Magnificent Seven large tech stocks surged. Both indexes, boosted by the AI trade, are within 0.4% of this month’s record closes.
The 10-year Treasury yield decreased six basis points, and the dollar remained stable after falling versus key peers in the previous session. Europe’s benchmark Stoxx 600 index fell, giving back part of Monday’s 1% gain.
Meanwhile, rocket and satellite businesses’ stocks rose in US premarket trade Tuesday, extending previous gains. The sector has improved since SpaceX filed for what is expected to be the largest-ever initial public offering. Redwire surged 15%, MDA Space jumped 13%, and Firefly Aerospace rose 11%.
Investors are mostly dismissing a rise in petroleum prices after the US targeted Iranian ships and missile launch sites, and Iran’s Tasnim news agency reported that the Islamic Revolutionary Guard Corps shot a US F-35 fighter jet. Israel also threatened to intensify its strikes against Hezbollah in Lebanon. While the news flow dims expectations for a quick restoration of oil flows through the Strait of Hormuz, investors remain confident that peace talks can still proceed.
