5 Things to Know Before the Stock Market Opens

• S&P 500 futures up 1.3%, Nasdaq futures up 2.2%, while WTI crude oil tumbled 5% to around $80.50 per barrel on hopes the Strait of Hormuz will reopen
• AI and semiconductor stocks are leading the rally with the iShares Semiconductor ETF up over 4% and memory chip stocks surging 6.5% amid component shortages
• The Fed is widely expected to hold rates steady at Wednesday's meeting, marking the first decision under new Chair Kevin Warsh who succeeded Jerome Powell last month

Market Summary: U.S.-Iran Deal Lifts Stocks, Pressures Oil

Key Market Movements

Stock futures surged Monday morning following news of a tentative U.S.-Iran peace deal. S&P 500 futures rose 1.3%, Nasdaq futures jumped 2.2%, and Dow futures added 1%. Major indexes posted weekly gains last week after volatile trading, boosted by technology stocks.

Oil prices tumbled 5% to approximately $80.50 per barrel for WTI crude, reaching the lowest levels since early March, on expectations the Strait of Hormuz will reopen. Gold futures climbed nearly 3% to $4,360 per ounce, while Bitcoin traded at $66,200. The 10-year Treasury yield fell to 4.46% from 4.49%.

U.S.-Iran Agreement Details

The peace deal is scheduled to be signed Friday in Switzerland, opening a 60-day negotiation period. Key discussion points include Iran's nuclear program and existing nuclear material. President Trump indicated the Strait of Hormuz will reopen following finalization. However, obstacles remain, particularly Israel's stated refusal to withdraw from Lebanon, which could jeopardize the agreement.

Sector Highlights

Technology/AI Stocks: Semiconductor and memory chip stocks led the rally. The iShares Semiconductor ETF (SOXX) rose over 4%, while the Roundhill Memory ETF (RMEM) jumped 6.5%. Notable gainers included Micron (+8%), AMD and Marvell Technology (+5% each), Intel (+3.5%), and SanDisk and Western Digital (+7% each), driven by ongoing memory chip shortages.

SpaceX: The company's IPO launched Friday, contributing to the tech sector's positive momentum.

Week Ahead

The Federal Reserve meeting Wednesday is the week's focal point, with no rate change expected. Investors await commentary from new Fed Chair Kevin Warsh. May retail sales data releases Wednesday. Markets close Friday for Juneteenth. Earnings expected from La-Z-Boy, CarMax, Kroger, and Accenture.