- Wall Street futures surged sharply after Trump signaled progress in Iran talks
- Dow Jones futures rose over 1,000 points, with S&P and Nasdaq up about 2.7%
- Trump ordered a five-day pause on military strikes against Iranian power plants
Wall Street looked set for a strong opening on Monday after US President Donald Trump signalled a potential breakthrough in talks with Iran, triggering a sharp rally in stock futures and a steep decline in oil prices.
Dow Jones Industrial Average futures surged over 1,000 points, or about 2.6%, while S&P 500 and Nasdaq-100 futures advanced roughly 2.7% each, pointing to a potential broad-based rebound across equities.
The rally followed Trump's statement that Washington and Tehran had held “very good and productive conversations” over the past two days regarding a possible resolution to ongoing hostilities in the Middle East.
“Based on the tenor and tone of these in-depth, detailed, and constructive conversations… I have instructed the Department of War to postpone any and all military strikes against Iranian power plants and energy infrastructure for a five-day period,” Trump said in a post on Truth Social, adding that discussions would continue through the week.
The de-escalation signal sharply eased concerns over energy supply disruptions. Crude prices tumbled, with West Texas Intermediate (WTI) falling more than 9% to below $90 per barrel, while Brent crude dropped over 13% to under $97.
Market sentiment improved across sectors, with cyclical and technology stocks leading gains in pre-market trade. Banking majors such as JPMorgan Chase and Morgan Stanley rose around 2%, while industrial names including Caterpillar and Deere also posted similar gains. Tech heavyweights Nvidia and Apple were up about 2% each.
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The rebound comes after a weak stretch for US equities, with the Dow and Nasdaq each falling around 2% last week, and the S&P 500 declining 1.5% amid escalating tensions linked to the Iran conflict. The Dow had marked its first four-week losing streak since 2023, while the Russell 2000 had already slipped into correction territory.
Trump's remarks come at a critical juncture, with the conflict entering its fifth week and tensions flaring over the weekend around the Strait of Hormuz, a key global oil transit route. The latest diplomatic signals appear to have temporarily reassured investors, lifting risk appetite and easing fears of further escalation.
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