Dow, S&P 500, Nasdaq Futures Surge on Extended US-Iran Ceasefire

US stock futures climbed on Wednesday after President Trump extended the ceasefire with Iran. S&P 500 futures rose 0.6%, Nasdaq 100 gained 0.7%, and Dow futures added 0.5%, reversing a losing Tuesday session.

The prior day had seen the S&P 500 fall 0.63% to 7,064, the Nasdaq drop 0.59% to 24,259, and the Dow shed 293 points to 49,149, as investors feared the ceasefire would expire without a deal. Oil futures had surged nearly 5% with the Strait of Hormuz still closed.

Trump announced the extension after markets closed, directing the military to maintain the blockade while keeping forces ready. The truce, he said, will hold until Iran submits a formal proposal. Iran, however, said it did not agree to the extended ceasefire, and separately, Vice President JD Vance's trip to Pakistan for fresh talks was scrapped after Iran chose not to attend.

However, a permanent deal looks distant. Trump cited a "seriously fractured" Iranian government as a key obstacle, while Iranian officials called the negotiations a "waste of time." United Airlines slashed its 2026 earnings outlook, citing a surge in jet fuel prices driven by the ongoing Middle East conflict. The move signals that supply chain pressures are now spreading well beyond the financial markets.

Markets are nonetheless hopeful that reduced hostilities could pull oil prices lower and support economic growth. Tesla reports its Q1 2026 earnings after market close today, with analysts expecting EPS of around $0.33 and revenue near $21.4 billion. The report is seen as the biggest earnings event of the week and a key focal point for investors.

The ceasefire extension has brought temporary relief, but talks remain stalled, and tensions are still simmering. Markets stay on edge, reacting sharply to every headline out of Washington and Tehran.

US stock futures moved higher Wednesday morning after former President Donald Trump announced an extension of the current ceasefire between the United States and Iran, easing concerns over an immediate escalation in geopolitical tensions.

Contracts tied to the S&P 500 rose 0.6%, while futures on the Nasdaq 100 advanced 0.8%. Futures linked to the Dow Jones Industrial Average also gained around 0.5%.

The rebound comes after a weaker Wall Street session, where all three major indexes closed in the red amid rising uncertainty over whether Washington and Tehran could agree on a longer-term framework before the ceasefire deadline. That hesitation had earlier weighed on the S&P 500, Nasdaq Composite, and Dow, reflecting growing sensitivity to geopolitical risk.

The ceasefire extension has introduced a temporary stabilizing factor, but diplomatic conditions remain fragile. Trump described dealing with a “seriously fractured” Iranian leadership, while Iranian officials reportedly dismissed negotiations as “a waste of time,” citing lack of progress on previous commitments.

Adding to the uncertainty, no official delegation from either the United States or Iran has arrived in Pakistan, despite earlier expectations that Islamabad could play a mediating or facilitation role in indirect ceasefire discussions. The absence of ground-level diplomatic engagement has reinforced doubts about how durable the current pause in tensions may be.

In commodities, oil prices retreated on easing risk sentiment. Brent Crude fell to just below $98 per barrel, while West Texas Intermediate slipped toward $88, reversing recent gains driven by supply disruption fears.

Attention also shifted back to monetary policy after a Senate hearing featuring Fed nominee Kevin Warsh, who rejected claims he would act as a political proxy, stating he would not be a “sock puppet” for the president when questioned about his independence.

On the corporate front, investors are now focused on a heavy earnings calendar, with major updates expected from Tesla, AT&T, and Boeing, adding another layer of volatility to an already sensitive market backdrop.