Wall Street Poised to Rise as US-Iran Tensions Ease Ahead of Fed Decision

Markets on Wall Street are poised to open higher on Monday, as eased tensions between the US and Iran have invigorated risk appetite. This newfound serenity has investors looking ahead to a hectic week dominated by major earnings reports, economic data, and a pivotal interest rate decision by the Federal Reserve.

Pre-market trading saw energy-sensitive stocks move in various directions. Airlines United Airlines and Southwest Airlines each rose 3.6%, while cruise operators Royal Caribbean and Carnival posted gains. However, a 6.8% drop in Brent Crude prices affected shares of energy giants Occidental Petroleum and Exxon Mobil, both falling approximately 3%.

Despite the temporary ceasefire in Middle East hostilities, concerns linger as attacks on vital oil installations and uncertainties around shipping lanes persist. Investors remain focused on the Fed's interest rate decision, with expectations that rates will hold steady this week. Market expectations for future rate hikes are influenced by upcoming inflation data, particularly the Personal Consumption Expenditures Price Index.