U.S. stock futures advanced sharply on Thursday following confirmation of a preliminary peace agreement between the United States and Iran as well as the latest statements from the Federal Reserve on monetary policy. The developments have heightened investor anticipation for changes in key geopolitical and economic factors.
At 4:22 p.m. (Bangkok Time), Nasdaq 100 futures were up 1.36%, while S&P 500 futures increased 0.75%. Contracts tracking the Dow Jones Industrial Average advanced by 0.41%.
The interim peace memorandum, jointly signed by President Donald Trump and Iran’s president, came sooner than previously anticipated. With immediate effect Thursday, the agreement is expected to facilitate the reopening of the Strait of Hormuz for commercial activity and remove restrictions on Iranian oil exports. Broader negotiations addressing Iran’s nuclear program are set to proceed over the next 60 days.
The previous day also marked the inaugural Federal Reserve meeting chaired by Kevin Warsh. Upon conclusion, the central bank opted to leave its benchmark interest rate unchanged, keeping the federal funds rate within a target range of 3.5% to 3.75%.
The updated projections from Fed policymakers show a shift in expectations, with several officials now forecasting higher rates by the end of 2026. The projected median rate for year-end 2026 now stands at 3.8%, compared to the 3.4% estimate released in March, indicating that a rate increase within the year is possible.
Thursday represents the final trading day this week for major U.S. equity markets, which will be closed on Friday for Juneteenth.
