Wall St futures surge on US-Iran peace deal; Fed in focus

 U.S. stock index futures rose sharply early Monday after Washington and Tehran confirmed they had reached a peace deal to end their war and reopen key shipping lanes in the Middle East.

Focus this week is squarely on a Federal Reserve meeting, with the central bank expected to leave interest rates steady.

S&P 500 Futures jumped 1.3% to 7,593.25 points by 01:51 ET (05:51 GMT). Nasdaq 100 Futures surged nearly 2% to 30,540.75 points, while Dow Jones Futures rose 1% to 52,132.0 points.

Futures rose after a strong Friday session on Wall Street, where SpaceX (NASDAQ:SPCX) soared in its debut session.

Wall Street was set for a strong open on Monday after positive, tech-fueled rallies in European and Asian markets.

US-Iran peace deal confirmed, to be signed on Friday 

U.S. President Donald Trump said on Sunday that a peace deal with Iran was now complete, with the Strait of Hormuz set to reopen in the coming days.

Separately, Iranian Deputy Foreign Minister Kazem Gharibabadi confirmed on state TV that a memorandum of understanding with Washington had been finalized, and will be officially signed on Friday in Switzerland.

The details of the deal were not immediately clear, although it is expected at the very least to spur the reopening of Hormuz and lift a U.S. naval blockade of Iran.

Tehran and Washington will also engage in 60 days of talks over Iran’s nuclear activities.

The peace deal is expected to help alleviate some pressure on the global economy from continued geopolitical strife in the Middle East. The U.S.-Israel war on Iran had begun in late-February and had sparked widespread disruptions in energy markets and shipping activity.

Wall Street had rallied on this notion last week, as markets bet that cooling energy markets would help bring down inflation and open a path towards eventual interest rate cuts by the Federal Reserve.