S&P 500, Nasdaq, Dow Futures Rise On Hopes Of Hormuz Reopening As Trump Teases ‘Great Deal’ With Iran: BB, INFQ, NVTS, ASTS In Focus

• An Iranian delegation has reportedly traveled to Qatar to consult with senior officials on the negotiations amid the ongoing conflict.
• Dow, S&P 500, and Nasdaq futures all climbed higher in Monday’s overnight session on hopes for a U.S.-Iran peace deal.
• Oil futures were mixed overnight but traded below $100 a barrel.

U.S. stock futures edged higher in the overnight trading session heading into Tuesday as hopes for a U.S.-Iran deal that would eventually lead to the reopening of the Strait of Hormuz boosted investor sentiment.

Nasdaq 100 climbed 0.83%, the S&P 500 futures were 0.62% higher, and the Dow futures were up 0.59% as of 9.12 p.m ET.  

Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY), Invesco QQQ Trust (QQQ) and SPDR Dow Jones Industrial Average ETF Trust (DIA) all traded higher at the time of writing. The iShares 20+ Year Treasury Bond ETF (TLT) was also up about 0.41% amid ‘bullish’ sentiment.

How Did US Markets Fare?

On Friday, benchmark indexes closed higher, with the S&P 500 posting its longest streak of weekly gains since 2023, while the Dow Jones index also climbed to a 52-week high, closing up 0.58%. The Nasdaq Composite added about 50 points to end the session 0.19% higher.

U.S. markets were closed on Monday in observance of Memorial Day.

US Market Drivers

U.S. stock markets turned optimistic about a potential peace deal between the U.S. and Iran, even as an Iranian delegation reportedly traveled to Qatar for consultations with senior officials.

Meanwhile, U.S. President Donald Trump said in a post on Truth Social on Monday that negotiations with Iran “are proceeding nicely!” However, the president added, “It will only be a Great Deal for all or, no Deal at all — Back to the Battlefront and shooting, but bigger and stronger than ever before — And nobody wants that!”

Trump also urged Saudi Arabia, Qatar, Pakistan, Turkey, Egypt, and Jordan to join the Abraham Accords to normalize relations with ‌Israel. “...after all the work done by the United States to try and pull this very complex puzzle together,  it should be mandatory that all of these Countries, at a minimum, simultaneously sign onto the Abraham Accords,” he said.

Pakistan has reportedly rejected the proposal, while none of the other countries have publicly responded to the demands.

Reports have also suggested that the U.S. and Iran are working on a plan to reopen the Strait of Hormuz about 30 days after a deal is reached, with Iran clearing mines from the strait to allow ships to pass through the waterway safely, according to a report from Nikkei.

However, the U.S. military conducted “self-defense strikes” on southern Iran, targeting Iranian missile sites and boats attempting to place mines.

Meanwhile, global stock markets rose to record highs on Monday, while oil prices slid lower amid hopes that the worst of the Middle East energy shock has passed. Markets will also be watching Kevin Wash’s first official day as the Federal Reserve chair, as inflation concerns in the country have revived conversations about rate hikes.

Trending Stocks To Watch

BlackBerry Ltd. (BB): Shares of the company jumped onto the retail radar after it climbed more than 8%. Investors have turned optimistic about its "profitable growth phase," driven by rising demand for its QNX software platform across automotive systems, robotics, and physical AI applications.

Infleqtion Inc. (INFQ): The quantum stock gained more than 3% in the overnight trading session, continuing to climb on the announcement from last week of a massive $2 billion government funding into the quantum computing sector.

Navitas Semiconductor Corp. (NVTS): Shares of the Nvidia partner jumped more than 6% in Monday’s overnight session, extending a three-day gain ahead of its participation in the Craig-Hallum Institutional Investor Conference later this week, where the company is expected to showcase its latest gallium nitride (GaN) and GeneSiC silicon carbide (SiC) products.

AST SpaceMobile Inc. (ASTS): The satellite communications company gained more than 5% in the overnight trading session on Monday as investors piled into the stock over a growing appetite for companies in the space economy.

Broader Market Trends

Oil futures were mixed overnight heading into Tuesday, trading below $100 a barrel. Brent crude futures expiring in July were up about 1.35%, trading at around $97.44 a barrel, while WTI crude futures expiring in June were down about 5.6%, trading around $91.18 a barrel at the time of writing.

Yields on the 10-year Treasury were at 4.504%, while gold prices slipped to around $4,542.57 an ounce.

Asian markets were also mixed at the open on Tuesday. While South Korea’s KOSPI hit a fresh record and the SSE Composite index climbed at the time of writing, Japan’s Nikkei 225 declined. Australian stocks were also lower at the open.

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