Stock Futures Rise as Investors Weigh Up Middle-East Truce and Fed Rate Cuts

Stock futures were mostly higher early Wednesday as investors bet that the truce in the Middle East will last and tried to figure out whether the Federal Reserve will cut interest rates in July or September.

Futures tracking the S&P 500 climbed 0.2%, while Nasdaq 100 futures were up 0.3% a day after the tech-heavy gauge marked its first record close since February. Dow Jones Industrial Average futures were flat. The S&P 500 closed Tuesday within 1% of its record high.

President Donald Trump accused both Israel and Iran of violating their cease-fire Tuesday, but the market appears to believe the pact will hold. The de-escalation of tensions in the Middle East has eased concerns about disruption of energy supplies, sparking a sharp drop in oil prices. Crude was rebounding Wednesday–the Brent international benchmark climbed 1.8% to $67.33 a barrel, and West Texas Intermediate U.S. prices were up 1.8% to $65.52 a barrel.