U.S. stock futures advanced sharply on Tuesday, buoyed by a tentative peace agreement between the United States and Iran that sent oil prices tumbling and eased inflation fears. The Dow Jones Industrial Average closed at a record high in the prior session, and futures on the S&P 500 rose 2.1% while Nasdaq-100 futures jumped 3.2%. The rally was broad-based, with technology and real estate sectors benefiting from a drop in the 10-year Treasury yield to around 4.43%-4.50%.
Mortgage Rates Hit One-Month Low
The 30-year fixed mortgage rate fell to 6.56%, its lowest level in a month, following the U.S.-Iran deal. Lower crude prices reduced inflation expectations, prompting a rally across equities. The Federal Reserve's upcoming rate decision remains a focal point; markets expect the Fed to hold rates at 3.50%-3.75% but price in a 42% chance of a hike by year-end. Housing experts note that further declines in mortgage rates may be limited unless economic data weakens significantly. Meanwhile, UK fixed mortgage rates could face increased competition after Brent crude fell nearly 5%, though brokers urge cautious optimism ahead of the Bank of England's decision.
SoFi Technologies Rallies Ahead of Fed Meeting
SoFi Technologies climbed 3.3% to $17.13 on Monday, outperforming the broader market as the Nasdaq Composite surged 3.07%. The rally was driven by easing inflation concerns and lower oil prices. Investors are now focused on the Federal Reserve's June 16-17 meeting, which could influence interest rates that directly impact lenders like SoFi. Despite solid first-quarter results — including a 41% revenue gain to $1.1 billion and 62% growth in adjusted EBITDA — SoFi shares remain under pressure after a 12% drop following its static 2026 guidance. Analyst ratings are mixed, reflecting uncertainty about valuation at 39 times earnings, though membership growth and loan volume increase underpin optimism ahead of Q2 earnings expected in late July.
Grab Holdings Advances on Superbank Subsidiary News
Grab Holdings shares rose 4.85% to $3.46 on Monday, outperforming the Nasdaq Composite. The rise came amid a broader risk-on rally on Wall Street, supported by easing U.S.-Iran tensions and falling oil prices. Investors are focusing on Grab's Superbank move, which is set to become a subsidiary after Grab increased its stake above 50%. Superbank, an Indonesian digital bank with over 6 million customers, recently reported strong asset and income growth. Grab will provide updated group guidance on its August Q2 earnings call, a key event for investors assessing the impact of Superbank on revenue and credit risk. Despite the rally and positive analyst ratings, Grab remains near its 52-week low, reflecting ongoing concerns about cash burn and growth targets.
Rathbones Group Plunges After FCA Review
Shares of Rathbones Group fell more than 16% in London after the UK Financial Conduct Authority mandated a review that uncovered compliance issues. The wealth manager disclosed a £60 million remedial program over two years to address shortcomings in consumer duty implementation and oversight controls. Rathbones will pause onboarding enhanced due diligence clients for up to 12 months and limit inflows from some existing clients, affecting 4% of its customer base. Additionally, from July 1, the company will stop charging investment management fees on cash balances in discretionary portfolios, impacting 2026 profits by £9 million. CEO Jonathan Sorrell reaffirmed commitment to their strategy despite the regulatory challenges.
Market Outlook
Key upcoming events include Kroger and Accenture earnings and the Federal Reserve meeting Wednesday, with inflation and consumer sentiment closely watched. Market focus remains on whether growth stocks can maintain momentum amid lingering inflation concerns and shifting sector preferences. Dow futures fluctuated in early trading, reflecting investor caution, while oil prices dropped amid concerns over demand and inventory levels. The S&P 500 and Nasdaq showed mixed signals as traders weighed economic data and corporate earnings. Market participants remain watchful of inflation trends and global economic developments impacting equities and commodities.
