U.S. stock futures rise as oil drops on hopes for Iran war talks
U.S. equity futures are climbing at the start of the shortened trading week as lower oil prices improve risk appetite after the Memorial Day market holiday. The move extends recent market momentum, with the S&P 500 having posted its longest weekly winning streak since late 2023.
Highlights
- U.S. stock futures rise with Dow futures up 440 points, S&P 500 futures up 0.9%, and Nasdaq-100 futures up 1.3% as oil drops 6% on Iran talks hopes.
- S&P 500 posts 0.9% weekly gain for its longest winning streak since late 2023, while Nasdaq records seventh gain in eight weeks and Dow advances 2.1%.
- CME FedWatch shows traders now price an 8.5% chance of a July Fed rate hike, up from 0.9% a month ago, despite recent crude price volatility.
Futures rebound as oil retreats
As reported by CNBC, stock index futures jump Monday night after President Donald Trump says talks with Iran to end the war are "proceeding nicely," while also warning that the U.S. could go on the offensive if negotiations break down.Dow Jones Industrial Average futures rise 440 points, or 0.9%. S&P 500 futures gain 0.9%, and Nasdaq-100 futures advance 1.3%. Crude prices fall sharply after Trump's comments, with West Texas Intermediate futures down about 6%.
Market momentum and rate outlook
The latest gains build on a strong run for equities last week. The S&P 500 climbs 0.9% for its longest weekly winning streak since late 2023, while the Dow adds 2.1% for its third weekly gain in four weeks and the Nasdaq rises 0.5% for its seventh gain in eight weeks.Adam Parker, founder of Trivariate Research, says fundamentals are at least partly driving the rally, pointing to projected earnings growth of 23% this year and 16% next year even as price-to-forward earnings multiples contract modestly.
Lower oil prices also support stocks last week, with U.S. crude losing 8.4% in its worst week since April 17. Still, crude remains well above levels seen earlier in the year, and persistent price pressures temper expectations for easier Federal Reserve policy. Traders are pricing in an 8.5% chance of a rate hike in July, up from 0.9% a month earlier, according to CME Group's FedWatch tool.
In our earlier article on WTI’s pullback after topping $100, we noted that oil prices entered a correction as traders reacted to signs of progress in U.S.–Iran talks and easing fears of supply disruptions through the Strait of Hormuz. We also highlighted that the geopolitical premium remained elevated, with OPEC+ cuts and falling U.S. inventories helping limit the downside while headlines from the region continued to drive sharp swings.
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
