Futures climb as oil drops after Iran deal; traders watching Fed meeting
Stocks futures rallied early Monday on news that Washington and Tehran struck a preliminary deal to end the Iran war and reopen the Strait of Hormuz. The route is vital for oil shipments. Dow E-minis traded up 480 points, or 0.94%, at 04:45 a.m. ET. S&P 500 E-minis added 95.75 points, or 1.29%. Nasdaq 100 E-minis rose 653.75 points, or 2.2%, per Reuters. MarketWatch reported Dow futures aimed for a roughly 500-point jump right after news broke of the tentative deal. Stocks moved higher after traders saw less geopolitical risk and oil prices tumbled. Brent crude was near $83 and U.S. crude traded around $80 in early moves, dropping over 4% after details of the deal, according to MarketWatch and Trading Economics. Lower oil often means reduced costs for fuel and freight, cooling inflation, and more stable consumer spending. Airline and cruise shares gained in premarket trading. United Airlines added 4.4%, Delta 4%, American Airlines 3.5%, Norwegian Cruise was up 4.3%, and Carnival rose 3.6%, Reuters reported.