Kospi index and US stock futures jump as Hormuz talks send oil prices plunging ahead of Fed meeting
Global markets rallied as diplomatic efforts between the US and Iran aimed to reopen the Strait of Hormuz, leading to a significant drop in oil prices. Investors are also preparing for a busy week of tech earnings and a Federal Reserve policy meeting.
Why it matters
The potential de-escalation in the Middle East is providing relief to global energy markets and boosting investor confidence.
Investors were bullish on Sunday evening as the U.S. and Iran continued to halt their attacks on each other, providing space for negotiations that could reopen the Strait of Hormuz.
Meanwhile, Wall Street is also looking ahead to a busy week of tech earnings and the Federal Reserve’s policy meeting.
Futures tied to the Dow Jones industrial average surged 337 points, or 0.65%. S&P 500 futures jumped 0.80%, but Nasdaq futures shot up 1.28%.
South Korea’s Kospi index, which has been a bellwether for global stocks lately, climbed 74 points, or 1.1%, as chip heavyweights SK Hynix and Samsung reached new deals.
U.S. oil prices tumbled 5.44% to $84.45 a barrel, and Brent crude dived 5.25% to $91.70. Gold rose 1.15% to $4,118 per ounce.
President Donald Trump and Iranian officials have said both sides are actively engaged in diplomacy after nearly two weeks of daily bombardment.
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