US stocks headed for a positive open on Monday as traders remained hopeful that Washington and Tehran would strike a peace deal, even amid a rise in oil prices.
Futures for the S&P 500 Index advanced 0.2% at 8:10 a.m. in New York, putting the gauge on track to extend gains for an eighth-straight session. The technology-heavy Nasdaq 100 Index climbed 0.1%, while Brent crude rose 2.8% to trade at around $94 per barrel.
“It’s Groundhog Day for the markets as the Iran-US ceasefire is tested, while conflicting noises are made about the prospects for a peace deal,” said Dan Coatsworth, head of markets at AJ Bell.
Markets have been dominated by a growing belief that the US and Iran will reach some form of peace agreement, according to Daniela Hathorn, a senior market analyst at Capital.com. At the same time, the investment story around artificial intelligence has gone from strength to strength.
“Together, these forces have created an environment where investors remain overwhelmingly focused on profits rather than risks,” said Hathorn.
On the war front, President Donald Trump said talks over an interim peace deal between the US and Iran would “work out well,” even as both sides clashed near the Strait of Hormuz once again. Constant speculation over whether Trump would agree to deal was not helping, the US leader said in a Truth Social post.
Earlier, Tehran had accused the US of sending conflicting signals and dragging out negotiations. Mohammad Bagher Ghalibaf, Iran’s Parliament Speaker and lead negotiator, said in a social media post that Israel’s escalation in Lebanon over the weekend and blockade on Iranian ports was “clear evidence of US noncompliance with the ceasefire.”
