Overnight Developments
Tentative U.S.–Iran Deal on Strait of Hormuz and Nuclear Talks — TheStreet / Bloomberg
The U.S. and Iran have reportedly reached a tentative agreement to reopen the Strait of Hormuz and launch a 60-day window of nuclear negotiations, pending final approval from the Trump administration. The deal would meaningfully ease Middle East tensions and strip geopolitical premium out of oil markets, a tailwind for energy-sensitive sectors that import fuel and a headwind for crude producers.
Affected sectors: Energy, Utilities, Transportation
Futures & Pre-Market
| Index | Futures | Change |
|---|---|---|
| S&P 500 | 7,590.50 | +0.13% |
| NASDAQ | 30,339.75 | +0.26% |
| DOW | 50,844.00 | +0.15% |
Futures are modestly green across the board — no single index is moving enough to signal an outsized open, but the risk tone is constructive on the back of the Iran headline.
Watchlist Movers
- SMCI −8.6% pre-market — Profit-taking after a strong ~18% post-earnings rally earlier in May (Q3 EPS beat of $0.84 vs. ~$0.62 consensus). Investors are reassessing valuation as the three-week run cools, with added pressure from a recent VP of Sales departure and ongoing export-control scrutiny over chip-smuggling allegations.
International Markets
Asia led the overnight session: the Nikkei 225 surged +2.50%, with the Hang Seng +0.70%; the Shanghai Composite lagged at −0.71%. Europe is quietly higher with both the FTSE 100 (+0.18%) and DAX (+0.18%) edging up.
What to Watch at Open
Watch crude oil and energy names for a downside reaction to the U.S.–Iran de-escalation, and keep an eye on SMCI to see whether its post-earnings unwind finds support or accelerates into the open.
This alert is for informational purposes only and does not constitute financial advice.