Futures Jumped Right Out of the Gate
For S&P 500 in monday morning kicked off with a bang. S&P 500 futures up 1.2%. Dow futures added 440 points which is about 1%. Nasdaq 100 futures were the big mover gaining nearly 2%. AI and tech names led everything. Traders went straight back into growth stocks without much hesitation.
Asia did not sit this one out either. South Korea Kospi rallied 5.6%. Japan Nikkei climbed 5%. Even the smaller Kosdaq added 0.8%. Peace headlines tend to do that. Risk comes back on and money moves fast into equities.
It was a full flip from the defensive mood that had been sitting over markets for most of last week. One announcement and the whole tone changed.
Oil Fell Hard and That Is a Big Deal
Trump posted on social media that the deal with Iran is complete. He also said the Strait of Hormuz is reopening. That is one of the most important shipping routes in the world for oil and energy supply.
Crude oil dropped nearly 5% on the news. Traders had been pricing in a lot of supply risk because of the conflict. That risk came out of the market very quickly once the announcement hit.
Lower oil prices matter beyond just the energy sector. Cheaper oil means less pressure on transport costs, manufacturing, and household bills. That feeds into inflation. Lower inflation means the Federal Reserve has less reason to raise rates aggressively. That is good for stocks, bonds, and basically everything that had been getting hurt by rate hike fears over the past week.
One announcement connected a lot of dots very quickly.
Friday Is When It Actually Gets Real
Here is the part where people should probably stay a little cautious. Trump announced the deal. But the actual signing ceremony is not happening until Friday in Switzerland according to Pakistani officials.
That leaves a few days between the announcement and the ink drying on paper. A few days is enough time for things to go sideways. Last minute disagreements. Political pressure from somewhere unexpected. Another military incident that changes the mood. Markets are celebrating now and asking questions later which is a very normal thing for markets to do.
The risk is that something happens between now and Friday that unravels the optimism. It has happened before with geopolitical deals. Until the signing actually happens this is still technically just an announcement.
Broader Market Is in a Good Place Heading Into This
Even before today’s jump the market had been holding up well. S&P 500 finished last week up 0.7%. It has now risen in 10 of the past 11 weeks. Year to date gain for 2026 sits at 8.6%.
Nasdaq has risen in 9 of the last 11 weeks. Up 11.4% for the year so far.
That kind of consistency in the background makes Monday’s move feel more like continuation than a desperate bounce. Bulls have been in control for most of 2026. This week’s news just gave them more to work with.
If the signing happens Friday without any problems the rally probably has more room to run. If something goes wrong between now and then markets will have to price that in quickly. For now the mood is clearly positive and momentum is on the side of buyers.