Key Highlights
- Futures advanced Tuesday morning with S&P 500 up 0.2% and Nasdaq futures jumping 0.5%
- President Trump indicated willingness to pursue additional diplomatic discussions with Iran
- Crude prices dropped under the $100 threshold, with Brent around $99 and WTI falling below $97
- The Nasdaq extended its winning streak to nine consecutive sessions Monday, the longest run since late 2023
- JPMorgan launched earnings season with a 13% profit increase; additional major financial institutions report soon
Equity futures in the United States climbed Tuesday morning as market participants digested new indications that Washington and Tehran might prolong their temporary ceasefire and pursue a comprehensive diplomatic agreement.
Futures for the S&P 500 advanced 0.2%, while Nasdaq 100 contracts jumped 0.5%, and Dow Jones futures hovered marginally positive. Monday saw gains across all three primary benchmarks, extending a period of measured confidence that began following the April 7 two-week ceasefire announcement.
President Trump indicated Monday that appropriate Iranian officials had initiated contact to negotiate an agreement. Financial markets interpreted this development favorably, despite weekend diplomatic sessions concluding without reaching a settlement.
Following Monday’s trading session, the S&P 500 had essentially recovered all declines accumulated since the conflict’s beginning. The Nasdaq registered its ninth consecutive positive close, marking its longest upward run since December 2023.
Henry Allen, macro strategist at Deutsche Bank, noted that market sentiment “steadily improved after Monday’s open,” identifying Trump’s statements as the primary driver. He observed that oil futures curves remain “heavily downward-sloping,” indicating markets continue viewing the conflict as transient.
Oil prices extended their retreat Tuesday. West Texas Intermediate crude fell beneath $97 per barrel, declining approximately 2.1%. Brent crude slid to roughly $99 per barrel. Both major benchmarks had traded above $100 for several weeks as the American blockade of the Strait of Hormuz interrupted energy shipments.
Energy Prices and Inflation Data Awaited
Financial markets have monitored crude prices intensely for approximately six weeks, worried that elevated energy costs might accelerate inflation. The March producer price index data scheduled for Tuesday is anticipated to provide clearer insight into the conflict’s price impact.
The dollar weakened 0.2% versus a basket of leading currencies as appetite for safe-haven positions diminished. The 10-year Treasury note yield declined 2 basis points to 4.27%. Gold climbed to $4,800, benefiting from dollar weakness.
European equity indices also advanced as crude prices retreated, mirroring a wider adjustment in investor sentiment.
Financial Sector Earnings Commence
Corporate earnings season has officially begun. JPMorgan Chase disclosed a 13% profit increase Tuesday. Chief Executive Jamie Dimon recognized the economy confronts an “increasingly complex set of risks.”
Johnson & Johnson also released results Tuesday. Bank of America, Wells Fargo, Citigroup, BlackRock, and Morgan Stanley are scheduled to report throughout the week.
The temporary ceasefire between the United States and Iran is scheduled to conclude next week. Reports suggest both Washington and Tehran are contemplating additional negotiations to prolong the arrangement.
The American naval blockade at Iran’s energy export facilities remained active as of Tuesday morning.
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