Wall St futures rise on Iran de-escalation hopes

U.S. stock futures rose on Tuesday as investors reacted positively to signs that tensions in the Middle East may be easing, offering some relief after weeks of market volatility driven by the Iran conflict.

Futures tied to the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 all moved higher, with gains of roughly 0.8%–0.9% in premarket trading, News.Az reports, citing Reuters.

Sentiment improved after reports suggested that U.S. President Donald Trump signaled openness to ending military operations against Iran, even if strategic routes such as the Strait of Hormuz remained partially disrupted.

The easing tone helped calm markets that have been under pressure throughout the month, with major U.S. indexes on track for their steepest monthly declines since 2022.

Energy markets, however, remained volatile. Oil prices have surged over the month due to supply concerns linked to the conflict, pushing the energy sector to one of the few areas of strength in equities.

The broader volatility has already pushed the S&P 500 and Dow into correction territory, while small-cap stocks have also followed the downward trend.

Analysts say investors are still trying to gauge how the conflict will affect inflation and Federal Reserve policy, especially as higher energy prices complicate the outlook for interest rate cuts.

Focus now shifts to upcoming U.S. economic data, including labor market reports, as well as comments from Federal Reserve officials for signals on the future policy path.

Despite the rebound in futures, markets remain sensitive to developments in the Iran conflict, which continues to drive uncertainty across global equities, energy markets, and central bank expectations.

News.Az 

By Aysel Mammadzada