Stock market today: Dow, S&P 500, Nasdaq futures climb with focus on Iran deal, Fed hike path

US stock futures jumped on Thursday, with techs pacing gains as investors digested the signing of the interim US-Iran peace deal and the latest Federal Reserve decision on interest rates.

Contracts on the tech-heavy Nasdaq 100 (NQ=F) surged 1.5%, while those on the S&P 500 (ES=F) moved up 0.8%. Meanwhile, Dow Jones Industrial Average futures (YM=F) rose 0.5%, coming off sharp closing losses for Wall Street stocks.

President Trump and his Iranian counterpart on Wednesday signed the memo outlining their countries’ peace agreement, a move previously expected on Friday. The deal went into effect on Thursday, potentially speeding up the timeline for reopening the Strait of Hormuz to commercial traffic and lifting sanctions on Iranian oil. Negotiations on more protracted issues, including Tehran’s nuclear program, are expected to take place over the next 60 days.

Oil prices dropped over 2% on the news, with Brent crude futures (BZ=F) sinking below $78 a barrel and West Texas Intermediate falling toward $74 a barrel. Amid the slide, Brent is not far off erasing all its war-fueled gains and poised for a second weekly loss in a row.

Meanwhile, investors eyed the chances that rates will stay higher for longer after more Fed officials signaled a hike is on the table for later this year, after standing pat on policy in their decision on Wednesday.

The central bank’s hawkish tilt comes as inflation has remained elevated and the job market steady amid conflict with Iran. Markets get fresh data on the labor market later with the release of weekly jobless claims figures.

Thursday will be the last day of trading for Wall Street stock markets, which will close on Friday to observe the Juneteenth holiday.