Investing.com– 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 climed 0.8% to 7,547.0 points, while 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.
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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. 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 closed at a record high. The benchmark S&P 500 advanced 0.4% — extending its winning streak to eight consecutive weeks, while the added 0.2% to finish near record territory.
Analysts said markets are likely to remain sensitive to headlines surrounding the Iran negotiations and the status of the Strait of Hormuz, with any confirmation of a reopening expected to further lift global risk assets.
Still, investors cautioned that significant damage to regional energy infrastructure and unresolved political disputes could keep volatility elevated even if a broader peace agreement eventually materializes.