U.S. stock index futures signaled a weaker open on Tuesday, indicating that markets may pull back after rebounding from an early decline to finish the previous session largely in positive territory.
Ongoing uncertainty surrounding the conflict in the Middle East may continue to weigh on investor sentiment, particularly as crude oil prices recover some of their losses following a sharp overnight drop.
April crude oil futures had plunged nearly 11% to a low of $84.43 per barrel before rebounding to trade back above $90.
The sharp swings in energy markets reflect lingering uncertainty over the U.S. military campaign against Iran following recent remarks from President Donald Trump.
Speaking at a press conference on Monday, Trump said the war with Iran could be resolved “very soon,” although he did not outline specific details about how the conflict might conclude.
In a later message posted on Truth Social, Trump warned that Iran would be struck “twenty times harder” if it takes any action to disrupt oil shipments through the Strait of Hormuz.
“We will take out easily destroyable targets that will make it virtually impossible for Iran to ever be built back, as a Nation, again — Death, Fire, and Fury will reign upon them — But I hope, and pray, that it does not happen!” Trump said.
Echoing the president’s message, U.S. Defense Secretary Pete Hegseth said at a press briefing Tuesday morning that Iran is “badly losing,” but confirmed that the United States still plans to carry out its “most intense day of strikes” in Iran later today.
U.S. equities had fallen sharply early Monday but later staged a strong recovery. The major indices rebounded from their lows and ended the session higher, led by gains in technology stocks.
In late trading, the rally strengthened, with the Nasdaq climbing 308.27 points, or 1.4%, to 22,695.95. The S&P 500 rose 55.96 points, or 0.8%, to 6,795.99, while the Dow Jones Industrial Average gained 239.25 points, or 0.5%, to 47,740.80.
Earlier in the session, the Dow had dropped as much as 1.9%, while both the Nasdaq and the S&P 500 slid up to 1.5%, marking their lowest intraday levels in more than three months.
The late-session rebound followed reports that Trump told a CBS News reporter the U.S. conflict with Iran could be nearing its conclusion.
CBS News Senior White House Correspondent Weijia Jiang posted on X that Trump told her, “I think the war is very complete, pretty much. They have no navy, no communications, they’ve got no Air Force.”
According to Jiang, Trump also said the United States is “very far” ahead of his original estimate that the conflict might last four to five weeks.
In a separate message, Jiang reported that Trump said he was considering taking control of the Strait of Hormuz, which contributed to a sharp drop in oil prices.
Earlier in the day, the surge in crude oil prices had weighed on stocks. Oil briefly climbed above $100 per barrel for the first time since 2022 and approached $120 at its peak.
The rally had been fueled by reports that major oil producers including Iraq, Kuwait and the United Arab Emirates were reducing output.
With the Strait of Hormuz effectively closed amid Iranian threats against oil tankers, those countries are reportedly facing growing constraints on storage capacity.
Technology shares helped drive the market’s recovery. Semiconductor stocks led the advance, with the Philadelphia Semiconductor Index jumping 3.9% after earlier falling as much as 2% to a two-month intraday low.
Shares of computer hardware, networking and biotechnology companies also rallied during the session, helping push the tech-heavy Nasdaq higher.
Airline stocks also rebounded strongly, lifting the NYSE Arca Airline Index by 1.8%. Earlier in the day, the index had dropped as much as 6.2% to its lowest intraday level in more than three months.
Oil services and healthcare stocks also finished the session higher, although telecom stocks remained among the weaker performers.
Leave a Reply