Kospi index and US stock futures jump due to Hormuz negotiations, oil price drop ahead of Fed meeting

Meanwhile, Wall Street is also looking ahead to a busy week of tech earnings and the Federal Reserve’s policy meeting.

Futures tied to the Dow Jones Industrial Average rose 337 points, or 0.65%. S&P 500 futures rose 0.80%, but Nasdaq futures rose 1.28%.

South Korea’s Kospi index, which has been a recent floater for global stocks, rose 74 points, or 1.1%, as the chip heavyweight. SK Hynix and Samsung reached new agreements.

US oil fell 5.44% to $84.45 a barrel and Brent crude fell 5.25% to $91.70. Gold rose 1.15% to $4,118 an ounce.

President Donald Trump and Iranian officials have said both sides are actively engaged in diplomacy after nearly two weeks of daily bombardment.

Iran and Oman are also negotiating separately, and a potential deal is coming together that will focus on that An Iranian ship passes through the Strait of Hormuz less restrictions on ships.

The United States and Iran’s neighbors are unlikely to accept any arrangement that recognizes Tehran’s control of the narrow waterway. But so is Trump running out of options reduce tensions in the oil market, which is on the way to a crisis with stocks extremely low.

At the same time, the United States has increased troops and aircraft in the Middle East in case Trump wants to continue major combat operations. But 40 days of war and 13 days of limited strikes failed to reopen the Strait of Hormuz.

Sources reported Axios that the head of US Central Command, Admiral Brad Cooper, recommended an end to the recent bombing campaign because it has reached the limit of its efficiency.

The New York Times also reported that Gen. Dan Caine, chairman of the Joint Chiefs of Staff, warned privately that resuming major combat operations was possible, but that Iranian retaliation would force the Central Command to deplete its interceptor stockpile to dangerously low levels.

It is a a sharp turnaround from a week agowhen Iranian attacks killed US troops in Jordan, crossing Trump’s red line to pursue full-scale war. Reports last week said he had lost patience with the Islamic Republic and was “state of revenge.” He then ordered a break on Friday.

Although the US now seems more restrained, the strike on Ukraine is An Iranian supply vessel in the Caspian Sea has suddenly expanded the map, fueling speculation that it could be used as leverage in US-Iranian negotiations.

Any progress in reopening the Strait of Hormuz should further lower oil prices, just as the Federal Reserve has sounded more hawkish in its fight against inflation.

Central bankers will meet next week, and Wall Street Expects Another ‘Family Feud’ as policymakers debate whether to raise interest rates or keep them steady.

The interest rate decision will also affect the artificial intelligence trade, which has collapsed recently investors rebelled against large capital expenditures.

More updates to this page are expected when Microsoft and Meta report earnings on Wednesday and beyond Apple and Amazon on Thursday.

Parent of Google Alphabet beat last week’s earnings estimates but revealed negative cash flow due to heavy spending.

Still, the demand for artificial intelligence capacity is still strong. AI developer Anthropic has requested supplies from memory chip giant SK Hynix to make their own semiconductors SK Group Chairman Chey Tae Won.

Rival Samsung Electronics also won the contract worth more than $200 billion to make chips Broadcom as companies look to expand in the AI ​​infrastructure market.