US-Iran Deal Boosts Wall Street Optimism Amid Hawkish Fed Signals
US and Iran Sign 14-Point Memorandum, Boosting Wall Street Optimism
The US and Iran have signed a 14-point memorandum of understanding, which includes provisions to reopen the critical Strait of Hormuz. This breakthrough has given them a 60-day window to negotiate a broader peace agreement.
Despite hawkish signals from the Federal Reserve, US stock futures surged early Thursday, with Nasdaq futures rising 1.4% and S&P 500 futures up 0.9%. The Fed held interest rates steady but indicated that at least one rate hike is back on the table for 2026.
Several tech stocks are in focus, including Intel Corp (INTC), which rose 7% after President Trump confirmed Apple's agreement to work with Intel to build chips domestically. Apple's CEO warned of 'unavoidable' price hikes due to rising AI-driven memory and storage costs.