Markets feel relief as the U.S. and Iran agree to a ceasefire on their earlier 'ceasefire' that was looking at lot like a war over Hormuz

(Credit: U.S. Navy)

Stock futures rallied on Sunday evening after the U.S. and Iran appeared to step back from a weekend of escalating violence in the Persian Gulf.

Futures tied to the Dow Jones industrial average rose 128 points, or 0.25%. S&P 500 futures were up 0.38%, and Nasdaq futures added 0.35%.