Gold prices dip as fresh US-Iran strikes drive up dollar, oil
Investing.com-- U.S. stock futures jumped on Monday night after a holiday on Wall Street, as signs of progress in talks to end the Iran war lifted investor sentiment and triggered a sharp retreat in oil prices.
S&P 500 Futures rose 0.6% to 7,538.0 points, while Nasdaq 100 Futures climbed 0.9% to 29,808.75 points by 20:10 ET (00:10 GMT). Dow Jones Futures advanced 0.6% to 50,966.0 points.
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Trump touts progress in Iran talks; oil slips
Investor sentiment improved after U.S. President Donald Trump said on Monday that talks with Iran were “proceeding nicely.”
Over the weekend, Trump said Washington and Tehran had “largely negotiated” a memorandum of understanding that could eventually reopen the Strait of Hormuz, a vital route for global crude and liquefied natural gas shipments. However, he also cautioned that there was “no rush” to finalize an agreement.
Oil prices tumbled on hopes that a potential deal could restore energy flows through the Middle East chokepoint. Brent Oil Futures slid more than 7% on Monday to near $96 a barrel.
WTI Crude Futures dropped 6% in Asian trading on Tuesday to near $90 per barrel.
The decline in oil prices boosted appetite for risk assets that had been pressured by rising inflation concerns.
US conducts fresh strikes in southern Iran, says ceasefire remains
However, gains were capped by reports saying the U.S. military conducted fresh strikes in southern Iran on Monday against missile launch sites and mine-laying boats.
The strikes were "defensive" in nature and did not indicate that a ceasefire with Iran had ended, reports said.
Still, investors remained wary that negotiations could face setbacks. Iranian officials have reportedly said key issues, including sanctions relief and shipping restrictions, remain unresolved despite progress in talks.
Wall Street had been closed on Monday for the Memorial Day holiday after ending last week on a mixed note. The Dow Jones Industrial Average had notched another record closing high on Friday, while investors remained cautious over elevated Treasury yields and uncertainty surrounding the Federal Reserve’s interest-rate path.
U.S. Investors will now focus on key U.S. inflation data later this week, including the personal consumption expenditures (PCE) price index -- the Fed’s preferred inflation gauge -- on Thursday for further Fed rate clues.