Stock futures rise as investors bet that Iran-Israel truce will stick

Stocks look set to extend their gains Tuesday, with futures contracts climbing amid investor hopes that Israel and Iran would abide by a ceasefire announced by President Trump.

As of 8:51 a.m. EDT, S&P 500 futures were up 42 points, or 0.7% while Dow Jones Industrial Average futures added 274 points, or 0.6%. Nasdaq Composite futures were up 1%.

"Israel accepted the ceasefire earlier this morning and while some headlines suggest there may have already been a violation, geopolitical concerns are quickly fading from the forefront of the market narrative," Adam Crisafulli, head of Vital Knowledge, said in a research note.