US stock futures jumped Monday night after comments from Trump indicate he is willing to end the war in Iran without opening the Strait of Hormuz.
Contracts linked to the S&P 500 (ES=F) and Nasdaq 100 (NQ=F) climbed 0.9%, while Dow Jones Industrial Average (YM=F) futures leaped 1%.
Futures soared on the news that Trump has made comments to aides that he may be seeking to find an end to the US-Isreali war in Iran, while communication from Washington is inconsistent. Comments from US leadership have pointed to potential progress in diplomatic discussions, while Trump also claimed that the US may move to seize control of Iran’s oil.
Investor sentiment took a downturn Monday from expanding geopolitical risks. The CBOE Volatility Index (^VIX) has held above 30, an indication of high market anxiety, while oil prices continued to push higher. The US benchmark West Texas Intermediate (CL=F) crude closed above $100 for the first time since 2022 as the US-Israeli war against Iran entered its fifth week.
On the monetary policy front, Federal Reserve Chair Jerome Powell offered reassurance that there is little chance of ‘contagion’ in private credit. indicating that inflation pressures appear contained for now and signaling no immediate need for further rate hikes.
Looking ahead, investors are gearing up for fresh economic data on Tuesday, including the March reading on consumer confidence and February’s Job Openings and Labor Turnover Survey (JOLTS), both of which should provide insight into the health of the US economy.
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