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Stocks Rise Pre-Bell as US, Iran Sign Peace Deal; Traders Assess Fed Rate Decision

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Stocks Rise Pre-Bell as US, Iran Sign Peace Deal; Traders Assess Fed Rate Decision

US equity markets were tracking in the green before the opening bell Thursday as investors weighed the signing of an interim US-Iran peace deal and the Federal Reserve's decision to hold interest rates steady.

The S&P 500 rose 0.7%, the Dow Jones Industrial Average gained 0.5% and the Nasdaq added 1.1% in premarket activity. The three main indexes finished Wednesday trading lower.

US markets will be closed on Friday for the Juneteenth National Independence Day holiday.

US President Donald Trump and Iranian President Masoud Pezeshkian on Wednesday signed a memorandum of understanding to end the Middle East war, Bloomberg News reported. Trump reportedly said he signed the agreement at the palace of Versailles near Paris.

The agreement was earlier reported to be scheduled for formal signing in Switzerland on Friday, but a spokesperson for Iran's Foreign Ministry said no ceremony would be held as the deal has been signed digitally, CNN reported.

The agreement calls for the rapid reopening of the Strait of Hormuz and immediate sanctions waivers for Iranian oil exports, with talks on nuclear issues to follow, according to the report.

Earlier on Wednesday, Trump said the proposed memorandum of understanding with Iran is "not final" and that Washington would resume military operations if he doesn't like the Tehran deal, according to various media outlets.

West Texas Intermediate crude oil dropped 2.9% to $74.58 a barrel before the open, while Brent declined 2.2% to $77.80.

The International Energy Agency on Wednesday lowered its global oil demand forecast for 2026 amid war-driven headwinds while projecting a rebound next year.

"While the US-Iran interim agreement paves the way for a rebound in Middle East (oil) exports, operational and political constraints, including prolonged demining and unresolved transit arrangements, leave downside risks to the outlook," the agency said.

The Fed kept its monetary policy steady on Wednesday to mark its fourth consecutive pause, removing the so-called easing bias from its statement. Fed policymakers raised interest rate expectations through 2028 and their inflation projections for 2026 and 2027.

The policy decision was the first under new Chair Kevin Warsh.

US Treasury yields were mixed in premarket action, with the two-year rate increasing 2.9 basis points to 4.19% and the 10-year rate retreating 0.6 basis points to 4.46%.

Thursday's economic calendar has the weekly jobless claims bulletin at 8:30 am ET, along with the Philadelphia Fed manufacturing index for June. The weekly Baker Hughes oil-and-gas rig count is out at 1 pm.

Intel's (INTC) shares jumped 8.3% pre-bell after Trump on social media said that iPhone maker Apple (AAPL) has agreed to work with the chipmaker to design and build chips in the US.

Robinhood Markets (HOOD) advanced 2.1% after finishing the previous trading session with an 8.8% jump. Meta Platforms (META) rebounded 1.6% following a 5.4% decline on Wednesday.

Accenture (ACN) and Kroger (KR) are scheduled to report their latest financial results before the bell.

Gold fell 2.1% to $4,289 per troy ounce, while bitcoin decreased 0.7% to $63,934.

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