S&P 500: Futures rebound on Hormuz ceasefire – Deutsche Bank

Deutsche Bank analysts report a strong recovery in S&P 500 futures after the US–Iran two-week ceasefire announcement and easing war fears. Futures are now less than 2% below pre-strike levels and well above the late-March lows. The report attributes the move to relief over a potential de-escalation path and improved risk sentiment across global equities.

Risk assets surge as tensions ease

"In turn, risk assets are seeing a sharp rally. S&P 500 futures are up +2.48%, which leaves them less than 2% below the levels on February 27 before the Iran strikes began and +6.8% up from their closing low on March 30."

"NASDAQ futures are +3.15%, while those on Euro STOXX 50 are +5.42% higher after a weak session yesterday."

"Earlier yesterday, markets had traded cautiously amidst worsening headlines, including Trump’s social media post that a “whole civilization will die tonight” unless “something revolutionarily” happens on Iran’s side, as well as news of increased strikes by the US, Israel and Iran across the Middle East. US markets then saw a recovery late in yesterday’s session as news broke that the US and Iran were considering Pakistan’s ceasefire proposal."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)