Stock futures were bouncing back Thursday after the Federal Reserve held interest rates steady and the U.S. and Iran signed an interim peace deal.
Oil prices were dropping following the agreement as the potential reopening of the Strait of Hormuz raised hopes for a gradual normalization of flows and return of Iranian barrels to the market.
At Kevin Warsh's first Fed meeting as chairman, nine out of 19 officials projected that at least one rate hike would be necessary by year end, a shift from March, when none expected that outcome.
Warsh's comments "led investors to fully price in a Fed hike by October, with the repricing weighing on risk assets," said Deutsche Bank. "However, futures are erasing most of this decline overnight following news yesterday evening that U.S. and Iranian leaders signed a memorandum of understanding to end the war."
Laffer Tengler Investments said change is coming and the new chairman of the Fed should be seen as thoughtful and flexible. "Markets and consumers should be happy that more of the same will not be the default."
