Dow, S&P 500, Nasdaq futures edge lower on Middle East news
US stock futures slipped Thursday morning, pausing a powerful rally triggered by news that the US-Israel coalition and Iran had agreed to a two-week ceasefire.
Futures tied to the S&P 500 (ES=F) and Dow (YM=F) each fell about 0.2%, while Nasdaq 100 (NQ=F) contracts dipped 0.2%, News.Az reports, citing foreign media.
The muted overnight activity followed a sharp rebound during the regular session: the S&P 500 (^GSPC) climbed 2.5%, the tech-heavy Nasdaq Composite (^IXIC) gained 2.8%, and the Dow Jones Industrial Average (^DJI) soared more than 1,300 points—the largest single-day increase since April 2025.
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The rally was driven by US-Iran deescalation talks. President Trump announced late Tuesday that Washington would pause strikes on Iran, citing a “workable” proposal from Tehran to resume negotiations.
The tentative ceasefire depends on reopening the Strait of Hormuz, a crucial oil shipping route closed for weeks amid the conflict. Iranian officials initially indicated willingness to reopen the passage temporarily if hostilities ceased.
However, Iran’s parliamentary speaker posted on X that Israel has already violated the ceasefire with attacks on Lebanon, keeping the strait closed.
Oil futures reacted to the news: Brent (BZ=F) rose 2.5% and West Texas Intermediate (CL=F) climbed 2.8% after-hours, following Wednesday’s drop of over 13% that pushed prices below $100 a barrel.
Looking ahead, investors are focused on key economic data Thursday, including the personal consumption expenditures (PCE) price index— the Federal Reserve’s preferred inflation gauge—alongside weekly jobless claims.
By Nijat Babayev
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