S&P 500: Futures recover following Hormuz truce – Deutsche Bank

Market Rebounds Following US–Iran Ceasefire Announcement

According to Deutsche Bank analysts, S&P 500 futures have experienced a notable upswing after the announcement of a two-week ceasefire between the United States and Iran, which has alleviated concerns about escalating conflict. The futures are now trading less than 2% below their levels prior to the strikes, and have climbed significantly above the lows seen at the end of March. This positive movement is credited to renewed optimism for de-escalation and a boost in risk appetite among global equity markets.

Risk Assets Rally Amid Reduced Geopolitical Uncertainty

As tensions ease, risk assets are experiencing a robust rally. S&P 500 futures have risen by 2.48%, positioning them just under 2% below their February 27 levels before the Iran strikes, and marking a 6.8% increase from the March 30 closing low.

NASDAQ futures have advanced by 3.15%, while Euro STOXX 50 futures surged 5.42% following a lackluster trading session the previous day.

Earlier, markets responded cautiously to deteriorating headlines, including a provocative social media post from Trump warning of dire consequences unless Iran made significant changes, alongside reports of intensified military actions by the US, Israel, and Iran throughout the Middle East. However, US markets rebounded late in the session after news emerged that both the US and Iran were open to Pakistan's ceasefire proposal.

This article was produced with assistance from an AI tool and subsequently reviewed by an editor.