US stock futures moved higher during Asian trading on Monday as investors reacted to reports that the United States and Iran had agreed to pause their latest attacks and restart negotiations.
The development eased concerns about a wider conflict around the Strait of Hormuz and its potential impact on global trade and energy supplies.
US Stock Futures Rise on Improved Risk Sentiment
S&P 500 futures gained 0.5% to reach 7,448.50 points as of 03:02 ET, or 07:02 GMT.
Nasdaq 100 futures climbed 0.9% to 29,643.75 points, while Dow Jones futures advanced 0.3% to 52,372 points.
The stronger performance suggested that investors were cautiously returning to riskier assets following a volatile week on Wall Street.
US and Iran Reportedly Agree to Halt Attacks
Market sentiment improved after an Axios report said Washington and Tehran had agreed to stop fighting over the Strait of Hormuz.
The two sides are also expected to resume negotiations in Doha, Qatar.
According to the report, US and Iranian officials plan to meet on Tuesday in an effort to prevent another escalation.
Weekend Conflict Raises Strait of Hormuz Concerns
The reported agreement followed renewed military activity over the weekend.
US forces carried out additional strikes against Iranian military and surveillance facilities after a tanker was attacked in the Strait of Hormuz.
Commercial shipping also faced renewed pressure in the strategically important waterway.
US President Donald Trump warned that Washington could be forced to complete its military operation if the attacks continued.
Iran Responds With Missile and Drone Attacks
Iran reportedly responded by launching missile and drone attacks against US military facilities in Bahrain and Kuwait.
Tehran also warned that it could suspend negotiations if the United States carried out further strikes.
The latest diplomatic efforts build on an interim peace agreement reached on June 17, which ended several weeks of escalating conflict in the Gulf region.
However, investors remain cautious because the underlying dispute over security and shipping routes through the Strait of Hormuz has not been fully resolved.
Oil Prices Recover After Weekly Decline
Oil prices moved modestly higher during Asian trading on Monday.
The increase followed a decline of nearly 10% during the previous week.
Energy markets are closely monitoring the situation because the Strait of Hormuz is one of the world’s most important shipping routes for crude oil and other energy products.
Any renewed disruption could affect global supplies and push oil prices higher.
Technology Stocks Remain Under Pressure
Technology shares will remain in focus after suffering heavy losses during the previous week.
Investors moved away from high-growth technology companies amid concerns about expensive valuations and weakening momentum in artificial intelligence stocks.
The S&P 500 declined by 2% last week.
Meanwhile, the Nasdaq Composite dropped 4.6%, recording its worst weekly performance in more than a year.
Apple Price Increases Weigh on Sentiment
Technology-sector sentiment was also affected after Apple raised prices on several MacBook and iPad models.
The company cited rapidly rising memory-chip costs, driven by strong demand from artificial intelligence data centres.
Higher component costs could place pressure on profit margins across the technology sector.
They may also increase concerns about whether the large amounts being invested in AI infrastructure will generate sufficient near-term returns.
US Jobs Data and Corporate Updates Ahead
Investors are now preparing for a busy week of economic and corporate announcements.
Upcoming US labour market data could provide further evidence about the strength of the economy and influence expectations for Federal Reserve monetary policy.
Markets will also assess second-quarter updates from several major companies.
With US Independence Day approaching, trading activity may be lighter than usual.
Nevertheless, developments in the Middle East are expected to remain a major influence on investor sentiment and global financial markets.
