Risk-on gets a small comeback
Stock futures woke up in a better mood on Monday. Nasdaq 100 futures jumped 1.2% and S&P 500 futures added 0.8% after reports said Washington and Tehran agreed to stop the weekend back-and-forth attacks. Translation: the market is taking a deep breath and pretending the adrenaline spike from last week never happened.
Why investors care
When tension flares in the Middle East, traders immediately start gaming out the usual sequel:
- oil prices
- shipping disruption
- a fresh dash for safe havens
- and a very grumpy stock market
So even a temporary truce can matter. It doesn’t erase the risk, but it can cool the panic trade fast enough to lift equities, especially after sharp losses in the major indexes last week.
The market’s favorite word: “for now”
The catch, of course, is that this is not the same thing as a permanent peace treaty or a solved geopolitical puzzle. It’s more like the market got told the house fire is contained — nobody’s declaring the building safe, but everyone’s stopping the stampede for the exits.
Big picture: investors are getting a classic reminder that geopolitics can hit stocks first and ask questions later. For the moment, though, the truce is enough to let risk assets breathe.