Markets Surge Amid Middle East Tensions and Economic Watch

The S&P 500 and Nasdaq are poised to open higher as Wall Street shows optimism amidst ongoing Middle East tensions. Despite Iran's rejection to reopen strategic passageways, talks hint at ceasefire possibilities, keeping investor hopes alive. Oil prices are down, influencing energy stocks ahead of critical economic policy updates.

The S&P 500 and Nasdaq indices are expected to open higher on Monday following the largest weekly increase seen on Wall Street in four months. Investors are carefully watching developments in the Middle East, with speculations around a potential end to ongoing conflicts fueling market optimism.

The United States and Iran were presented a framework aimed at ending hostilities; however, Iran declined to immediately reopen the strategic Strait of Hormuz. Meanwhile, President Donald Trump has set a Tuesday deadline for the waterway’s reopening. Despite these tensions, an Axios report points to discussions of a 45-day ceasefire, providing some reassurance to investors.

Oil prices declined, impacting U.S. energy stocks like ConocoPhillips and Occidental Petroleum. Trading volume is expected to be light as many global markets observe public holidays. Meanwhile, the CBOE Volatility Index rose to 24.94, as Wall Street remains cautiously optimistic in light of economic indicators due later this week.