US stock futures climbed Wednesday morning after Trump announced an extension of the current ceasefire with Iran, tempering fears of an imminent escalation in the region.
Contracts tied to the S&P 500 (ES=F) rose 0.6% as Nasdaq 100 futures (NQ=F) advanced 0.8%. Dow (YM=F) futures also gained 0.5%.
The rebound follows a weak session on Wall Street, where all three major indexes closed lower. Earlier in the day, markets had come under pressure amid growing skepticism that Washington and Tehran would reach a longer-term agreement before the ceasefire deadline. That uncertainty dragged the S&P 500 (^GSPC), Nasdaq Composite (^IXIC) , and Dow Jones Industrial Average (^DJI) into the red.
The extension introduces a temporary buffer, but the path forward remains uncertain. Diplomatic efforts appear fragile, with Trump citing difficulty dealing with a “seriously fractured” Iranian government. Iranian officials. meanwhile, claim talks with the US are a “waste of time” based on the lack of commitment to previous deals.
Oil futures fell, undoing recent gains on the news that Iran has received “some news” that the US is willing to end the current blockade. Brent (BZ=F) crude, the global benchmark, declined to trade just below $98 a barrel. Meanwhile, US benchmark West Texas Intermediate (CL=F) has slipped to $88 a barrel.
The Fed came back into focus on Tuesday after a Senate hearing for chair nominee Kevin Warsh. Warsh addressed allegations he reached the reserve bank’s top spot with promises to be Trump’s stooge . When asked whether he would be the president’s “sock puppet,” Warsh responded, “absolutely not.”
On the corporate front, investors are preparing for another wave of earnings reports with Tesla (TSLA), AT&T (T), and Boeing (BA) all releasing updates Wednesday.
