Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomePMN BusinessUS Futures Climb as Iran Deal Counters Hawkish Fed: Markets WrapUS equity futures rose and oil prices retreated as President Donald Trump signed an interim deal to end the war with Iran and reopen the Strait of Hormuz, boosting risk sentiment after the Federal Reserve’s hawkish hold.Author of the article:Last updated 45 minutes ago You can save this article by registering for free here. Or sign-in if you have an account.A foreign exchange dealer works inside the Woori Bank trading room in Seoul, South Korea, on Thursday, May 7, 2026. South Korea's equity market has overtaken Canada's as the worlds seventh largest, propelled by insatiable demand for chips powering artificial intelligence. Photographer: SeongJoon Cho/Bloomberg Photo by SeongJoon Cho /Bloomberg(Bloomberg) — US equity futures rose and oil prices retreated as President Donald Trump signed an interim deal to end the war with Iran and reopen the Strait of Hormuz, boosting risk sentiment after the Federal Reserve’s hawkish hold.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorContracts on the S&P 500 jumped as much as 0.9% while Nasdaq futures rallied 1.5%. The moves followed a 1.2% decline in the US benchmark on Wednesday after the Fed signaled rates may need to rise further to contain inflation. Brent crude fell more than 2%, dropping below $78 a barrel. European stock futures were down while a gauge of Asian stocks rose for a fifth day.“The positive surprise for equities came from Trump’s signing of the Memorandum of Understanding with Iran,” said Rajeev De Mello, global macro portfolio manager at Gama Asset Management. “While markets had already been pricing a gradual normalization of shipping through the Strait of Hormuz, there had remained a meaningful risk of a last-minute collapse in negotiations. The agreement substantially reduces that tail risk.”Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againTrump told reporters he signed the document at the palace of Versailles near Paris. The MOU is now in effect, a US official said. However, it was unclear if Iran had immediately begun taking steps to fully reopen the strait.The yield on 10-year Treasuries fell four basis points to 4.45% after rising about five basis points following the Fed decision. The two-year Treasury yield, which is highly sensitive to policy expectations, retreated two basis points to 4.16% after jumping 13 basis points in the previous session. Still, yields on Australian and Japanese 10-year bonds edged higher on Thursday.Optimism that the US-Iran deal may ease geopolitical tensions and reduce the risk of further disruptions to global energy supplies has provided another tailwind for global equities. The asset class has largely shrugged off the turmoil sparked by the war and continued to notch record highs on the back of relentless enthusiasm for artificial intelligence.Bond investors, however, face the prospect of lingering inflationary risks that may keep the higher-for-longer rates narrative intact. Even though oil prices have eased, pressure on inventories remains acute. Stockpiles at Cushing, the largest US commercial storage hub, have sunk to about 20 million barrels, a level traders consider an operational minimum.Central banks in Indonesia and the Philippines — two economies hit hard by the energy shock — are both expected to raise their policy rates by a quarter-point each on Thursday, according to the majority of economists surveyed by Bloomberg. The Bank of England and Taiwan’s central bank are forecast to leave rates unchanged.Most emerging Asian currencies, including the rupiah and the peso, weakened against the dollar on Thursday. In Japan, the yen fell to its weakest level against the US dollar since July 2024, raising the risk of official intervention. Investors remain concerned the central bank is not tightening policy quickly enough to contain inflation and stabilize the currency, even after it raised its benchmark rate to the highest level since 1995 earlier this week.‘Getting Ready’The Fed decision marked the fourth consecutive meeting in which the central bank left rates unchanged. Officials described economic growth as “solid” and highlighted strong productivity gains and capital investment, while making clear that inflation has become a greater concern than labor-market weakness.Roughly half of Fed policymakers projected rate hikes this year, prompting traders to fully price in an increase by October and see a strong chance of a move as soon as September.Chairman Kevin Warsh, in his first press conference as head of the Fed, declined to offer guidance on the next policy move. He emphasized that inflation has remained above the Fed’s 2% target for several years and reiterated the central bank’s commitment to restoring price stability.“Half the committee is expecting rate hikes this year, which is a real shot across the bow at the market,” said Bob Michele, chief investment officer and global head of fixed income at JPMorgan Asset Management. “I think they’re getting ready for rate hikes.”Warsh also announced the creation of a task force to review the Fed’s $6.7 trillion balance sheet, an issue he has long criticized. The group would examine whether “monetary policy is coming from our interest rate tool or our balance sheet tool,” he said.Elsewhere in markets, the Bloomberg Dollar Spot Index slipped 0.2% on Thursday after climbing 0.7% in the last session. Gold and silver advanced more than 1%.Asian tech shares followed Nasdaq futures higher, with an index of the sector climbing more than 1.5%.“The Fed’s hawkish tone still hurts, but the sharp drop in oil prices helps counter the renewed inflation scare and gives investors room to push back against the higher-rate narrative,” said Hebe Chen, a senior market analyst at Vantage Global Prime.Corporate Highlights:National Stock Exchange of India Ltd., the operator of the world’s busiest derivatives market, has filed draft documents for what’s on track to be one of the largest initial public offerings in India’s history.Blue Origin is already rebuilding the Florida launch site where its New Glenn rocket exploded last month, making way for the space company to fly again this year and rejuvenate its ambitions to challenge SpaceX.CME Group Inc. Chief Executive Officer Terry Duffy is handing over the reins after more than 25 years at the world’s largest derivatives exchange. He will step down on March 1 and transition to executive chairman. Chief Financial Officer Lynne Fitzpatrick will take over as CEO.Angry shareholders confronted Nidec Corp.’s board at the motor manufacturer’s annual meeting, following a tumultuous year marred by accounting scandals, manufacturing defects and the ouster of its charismatic founder.One of Google’s most prominent researchers is leaving for rival OpenAI, dealing a setback to Alphabet Inc. in a multibillion-dollar race to build the world’s most powerful artificial intelligence models.Chinese investors have fueled a surge in shares of newfound AI darling Kingboard Laminates Holdings Ltd., more than doubling their stake in the company to 13% this year, according to the latest stock exchange data.StocksS&P 500 futures rose 0.7% as of 2:02 p.m. Tokyo timeJapan’s Topix rose 1.4%Australia’s S&P/ASX 200 fell 0.6%Hong Kong’s Hang Seng fell 1.7%The Shanghai Composite fell 0.4%Euro Stoxx 50 futures fell 0.7%CurrenciesThe Bloomberg Dollar Spot Index fell 0.2%The euro rose 0.2% to $1.1522The Japanese yen was little changed at 160.60 per dollarThe offshore yuan rose 0.2% to 6.7637 per dollarCryptocurrenciesBitcoin fell 0.9% to $63,767.07Ether fell 1.2% to $1,725.35BondsThe yield on 10-year Treasuries declined four basis points to 4.45%Japan’s 10-year yield advanced one basis point to 2.605%Australia’s 10-year yield advanced one basis point to 4.78%CommoditiesWest Texas Intermediate crude fell 2.5% to $74.87 a barrelSpot gold rose 1.4% to $4,314.70 an ounceThis story was produced with the assistance of Bloomberg Automation.—With assistance from Aya Wagatsuma and Abhishek Vishnoi. 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