U.S. stock futures moved higher early Wednesday after President Donald Trump announced an extension of the ceasefire with Iran, easing immediate geopolitical concerns.
Futures tied to the S&P 500 rose 0.52%, while Nasdaq 100 futures advanced 0.68%. Dow Jones Industrial Average futures climbed 217 points, or 0.44%.
The gains followed a weaker session on Wall Street, where all three major indexes closed lower amid worries that Washington and Tehran might fail to reach a peace agreement before the ceasefire deadline. The S&P 500 declined 0.63%, the Nasdaq Composite fell 0.59%, and the Dow dropped 293 points, also down 0.59%.
However, sentiment improved after the market close when Trump confirmed a two-week extension of the ceasefire, citing instability within Iran’s government. In a post on Truth Social, he stated that the decision was influenced by requests from Asim Munir and Shehbaz Sharif, allowing more time for Iran to present a unified proposal.
Trump added that U.S. forces would maintain the blockade while remaining prepared for further action, with the ceasefire in place until negotiations progress or conclude.
Uncertainty still lingers, however, as reports indicate limited engagement from Tehran. A planned trip by Vice President JD Vance to join peace talks has been paused, according to sources cited by The New York Times and Axios. Iranian state media also suggested that negotiators may not participate, calling the talks a “waste of time.”
Despite the geopolitical tension, markets have shown resilience. Last week, the S&P 500 erased all losses tied to the conflict and reached fresh record highs, closing above the 7,100 mark for the first time.
Looking ahead, Stephanie Aliaga expects the rally to continue, supported by strong momentum in artificial intelligence and improving productivity trends.
On the corporate front, companies including AT&T, Boeing, Boston Scientific, GE Vernova, CME Group, and Moody’s are set to report earnings ahead of Wednesday’s opening bell.
