US Futures Rise; Hormuz Deal Nears; Kashkari on Rates; ADP Private Jobs Up 44K

Lead US equity futures are trading higher this morning. Geopolitical developments include a potential deal to reopen the Strait of Hormuz and ongoing tensions in the Middle East. Minneapolis Fed President Kashkari commented on interest rates, and ADP reported a 44,000 increase in private sector jobs. Session narrative US equity futures are showing gains in pre-market trading, with S&P 500 futures up 0.47% and Nasdaq futures up 0.25%. This positive sentiment comes amidst news of a potential deal between the US and Iran to reopen the Strait of Hormuz, which is contributing to a rise in crude oil prices. WTI crude is up 0.59% and Brent crude is up 1.22%. Gold and silver are also seeing significant gains, up 2.44% and 2.99% respectively. In economic news, ADP reported an increase of 44,000 private sector jobs. Federal Reserve commentary from Minneapolis Fed President Kashkari suggests a belief that it's time to slowly move interest rates up, though he is not calling for a dramatic increase. The US 10-year yield is slightly down by 0.17%. Geopolitical tensions persist with Russia striking Ukrainian cargo vessels and Israel issuing warnings to residents in South Lebanon amidst ceasefire violations by Hezbollah. Cross-asset check Equity futures are broadly positive, with S&P 500 futures up 0.47% and Nasdaq futures up 0.25%. The US Dollar Index is down 0.13%. In the rates market, the US 10-year yield is down 0.17%. Commodities are seeing strong moves, with Gold up 2.44% and Silver up 2.99%. Crude oil prices are also higher, with WTI crude up 0.59% and Brent crude up 1.22%. Volatility, as measured by the VIX, is up 2%. Themes & continuing stories Geopolitical developments remain a dominant theme, with reports of a potential deal to reopen the Strait of Hormuz providing some relief, while conflicts in Eastern Europe and the Middle East continue to generate uncertainty. Central bank policy is another key focus, with Fed officials' comments on interest rates being closely watched. The ongoing earnings season continues to provide company-specific catalysts and insights into corporate performance. What’s ahead Looking ahead, investors will monitor further developments regarding the Strait of Hormuz negotiations and the broader geopolitical landscape. Upcoming earnings reports, including EBAY later today, and WBD and COP tomorrow, will also be in focus. Any additional commentary from Federal Reserve officials will continue to be scrutinized for clues on monetary policy direction.