U.S. stock futures moved higher Tuesday as oil prices reversed earlier gains and declined in overnight trading.
Futures linked to the S&P 500 rose 0.8%, while Nasdaq 100 futures advanced 0.7%. Dow Jones Industrial Average futures climbed 394 points, or 0.86%.
The gains followed a Wall Street Journal report indicating that President Donald Trump is open to ending military tensions in the Middle East, even if the Strait of Hormuz remains largely closed.
Oil prices had initially surged after Bloomberg reported that Iran struck a Kuwaiti oil tanker in Dubai waters. However, Dubai authorities confirmed that all 24 crew members were safe and no injuries were reported. Brent crude and West Texas Intermediate both posted earlier gains before reversing course and trading lower.
In Monday’s session, U.S. markets closed mixed. The S&P 500 fell 0.39%, marking its third straight decline, while the Nasdaq Composite dropped 0.73%. The Dow Jones Industrial Average managed a modest gain of 49.50 points, or 0.11%.
The S&P 500 now sits more than 9% below its recent closing high, with technology stocks leading the downturn, falling over 1%. However, market strategist Art Hogan suggested the pullback may be a normal correction rather than a sign of deeper weakness.
Geopolitical tensions remained a key driver, with the CBOE Volatility Index rising above 30 and oil prices climbing earlier in the week.
Still, investor sentiment found support in signs of potential de-escalation. Trump stated that “great progress has been made” in discussions with Iran, noting that the country has agreed to most elements of a U.S. proposal, including allowing additional oil shipments through the Strait of Hormuz.
Adding to the positive tone, Federal Reserve Chair Jerome Powell indicated that inflation remains under control and that no further rate hikes are needed at this time.
Investors are now turning their attention to upcoming economic data, including March’s consumer confidence report and February’s JOLTS job openings.
