U.S. stock futures jumped on Sunday evening as signs of progress in talks to end the Middle East conflict triggered a sharp drop in oil prices, even as President Donald Trump cautioned there was “no rush” to finalize a deal with Iran.
S&P 500 Futures climbed 0.8% to 7,547.0 points, while Nasdaq 100 Futures surged 1.3% to 29,940.75 points by 21:44 ET (01:44 GMT). Dow Jones Futures traded 0.6% higher at 50,974.0 points. U.S. stock markets will be shut on Monday for a public holiday.
Investor sentiment improved after Trump said Washington and Tehran had “largely negotiated” a framework agreement aimed at reopening the vital shipping route, which handles roughly a fifth of the world’s oil flows. But Trump later struck a more cautious tone, saying the U.S. would maintain its naval blockade until a formal agreement was signed and certified.
“There is no rush,” Trump said on Sunday, underscoring lingering disagreements over Iran’s uranium stockpile, sanctions relief, and regional security issues. Oil prices tumbled as traders bet the worst-case supply shock scenario may be avoided. Brent crude fell more than 4% to below $100 a barrel.
The retreat in crude prices also pressured the dollar and Treasury yields, with investors moving back into equities after a volatile week dominated by concerns over rising borrowing costs and geopolitical uncertainty. The gains in futures followed a strong finish on Wall Street last week, when the Dow Jones Industrial Average closed at a record high.
