Oleksandr Pylypenko
9 min read
September S&P 500 E-Mini futures (ESU25) are up +0.67%, and September Nasdaq 100 E-Mini futures (NQU25) are up +0.89% this morning as sentiment got a boost after U.S. President Donald Trump announced a ceasefire between Israel and Iran.
President Trump announced late on Monday that Israel and Iran had agreed to a ceasefire that could pave the way to ending the war. Hours later, Mr. Trump confirmed that the ceasefire was now in effect and called on both nations to honor the agreement. “PLEASE DO NOT VIOLATE IT!” he said in a social media post at 1:08 a.m. ET. Trump’s statement was soon followed by a confirmation from Israeli Prime Minister Benjamin Netanyahu that his country had agreed to a truce. Iranian Foreign Minister Abbas Araghchi said in an earlier post that his country would cease fire as long as Israel did.
Stock index futures trimmed some gains after Israel reported detecting a missile launch from Iran just hours after the truce announcement and ordered the military to “respond forcefully to Iran’s violation of the ceasefire.” At the same time, Iran rejected claims it had launched the missiles after the truce, according to the state-run news agency.
President Trump said on Tuesday that he believed both Israel and Iran breached the ceasefire he had announced just hours earlier, adding that he was not happy with both nations, but particularly with Israel. “I think they both violated it,” Trump said as he departed the White House to attend the NATO summit at The Hague. But when asked whether the ceasefire was breaking, Trump replied, “I don’t think so.”
Investors now await a fresh batch of U.S. economic data and Federal Reserve Chair Jerome Powell’s congressional testimony.
In yesterday’s trading session, Wall Street’s main stock indexes ended in the green. Tesla (TSLA) surged over +8% and was the top percentage gainer on the S&P 500 and Nasdaq 100 after the electric vehicle maker rolled out its robotaxi service to some riders in Austin, Texas. Also, Northern Trust (NTRS) climbed more than +8% after the Wall Street Journal reported that Bank of New York Mellon had approached the company last week to express interest in a merger. In addition, Estee Lauder (EL) gained over +4% after Deutsche Bank upgraded the stock to Buy from Hold with a price target of $95. On the bearish side, Hims Hers Health (HIMS) plummeted more than -34% after Novo Nordisk ended its partnership with the telehealth company.
Economic data released on Monday showed that the U.S. S&P Global manufacturing PMI was unchanged at 52.0 in June, stronger than expectations of 51.1. Also, U.S. May existing home sales unexpectedly rose +0.8% m/m to 4.03M, stronger than expectations of 3.96M. At the same time, the U.S. S&P Global services PMI fell to 53.1 in June, though the decline was less than the expected 52.9.
