Stock Market Impact: U.S. stock futures rose sharply on Monday—Dow futures +399 points (0.8%), S&P 500 futures +70 points (0.9%), Nasdaq‑100 futures +407 points (1.4%)—as markets priced in a possible U.S.–Iran peace framework. Asian and European equity markets also rallied, though liquidity was thin due to the U.S. Memorial Day holiday.
Listed Companies and Sectors: Delivery Hero SE shares jumped 9.7% to €36.85, their highest level in 18 months, after a Financial Times report that Uber may increase its bid. Brent crude futures fell 4.7% to $95.54 per barrel, slipping below the $100 threshold following optimism that the Strait of Hormuz could reopen.
Investment Flows: The prospect of reopening the Strait of Hormuz, a conduit for roughly 20% of global oil shipments, could ease oil‑related risk premiums and improve foreign investment sentiment in energy‑intensive economies.
Interest Rates, Inflation, and Liquidity: Analysts expect central banks, including the U.S. Federal Reserve, to keep rates higher for longer; the Fed is now projected to raise rates by 25 basis points in January 2027, reversing earlier expectations of cuts. The oil price decline may temper inflationary pressures, but higher rates remain a concern.
Fiscal or Monetary Policy: No specific fiscal measures were announced. Monetary policy outlook has shifted upward due to the geopolitical risk premium and anticipated rate hikes.
