US equity indices closed higher yesterday. The S&P 500 rose 1.08%, the Nasdaq 100 gained 1.91% and the Dow Jones Industrial Average advanced 0.14%.

Although last Friday was a holiday, equity futures rose already today. Markets began the week with caution, yet Asia's technology sector once again pulled indexes higher. Brent crude surrendered its initial gains and fell about 2% below $79 a barrel after the United States and Iran agreed on a plan to seek a final peace accord within 60 days. The Asian stock gauge added 0.7%, S&P 500 futures were up about 0.1%, and Nasdaq 100 futures rose about 0.3%. Gold recovered, and Treasury yields eased as trading resumed after Friday's US holiday.

The first day of talks in Switzerland ended on an encouraging note. Mediators from Qatar and Pakistan said in a joint statement there had been encouraging progress, including creation of a mechanism for further technical discussions. The United States and Iran established a line of communication to prevent incidents and to ensure safe passage of commercial vessels through the Strait of Hormuz. The parties also agreed to create a coordination center for conflict resolution that will include Lebanon—the Lebanese track had repeatedly threatened to derail the negotiation architecture.

The artificial intelligence narrative continues to exert strong influence. An Asian subgroup of technology stocks rose 2%, led by Taiwan's chip market. In Seoul, shares of LG Electronics jumped more than 13% intraday after reports that LG Group executives visited Nvidia's headquarters to discuss cooperation in physical AI and robotics.

In the bond market, yields are rising as investors continue to price a firm Fed stance. The main event of the week will be US data on consumer spending, which should indicate whether the market's hawkish reassessment is justified.

Separate pressure is building on the pound sterling, which is trading near its annual low. In addition to the Bank of England's dovish stance, political turmoil is contributing to weakness: sources say Keir Starmer may announce the timing of his resignation as prime minister as soon as today.

A technical outlook for the S&P 500 suggests that the immediate task for buyers today is to clear resistance at $7,494. Doing so would demonstrate upside momentum and open the way to $7,518. Securing control above $7,544 would further strengthen the buyers' position. If risk appetite wanes and the market moves lower, buyers must defend the $7,474 area. A break below that level would quickly push the index to $7,451 and open the path to $7,427.