U.S. stock futures signaled a higher start on Wednesday, suggesting equities may rebound after the mild decline recorded in the previous trading session.
Oil prices have eased after a report by the New York Times indicated that Washington had delivered a 15-point proposal to Iran intended to bring the Middle East conflict to an end.
According to two officials familiar with the diplomatic discussions, the New York Times said the proposal was transmitted through Pakistan and addresses Iran’s ballistic missile and nuclear programs.
The newspaper noted that it remains uncertain whether Tehran will accept the proposal as a starting point for negotiations, but argued that sending the plan demonstrates the administration’s increasing efforts to bring the conflict to a close.
As diplomatic activity intensifies, Iran has informed the United Nations Security Council and the International Maritime Organization that “non-hostile vessels” may pass through the Strait of Hormuz with the approval of Iranian authorities.
Following Monday’s rebound rally, equities delivered a relatively subdued performance on Tuesday. Major indices moved unevenly during the session before ending the day modestly lower.
The Nasdaq dropped 184.87 points, or 0.8%, finishing at 21,761.89. The S&P 500 declined 24.63 points, or 0.4%, to close at 6,556.37, while the Dow slipped 84.41 points, or 0.2%, ending at 46,124.06.
The choppy trading on Wall Street coincided with a rebound in oil prices, as Brent crude futures climbed back above the $100-per-barrel mark.
Brent had previously plunged nearly 11% during Monday’s session after President Donald Trump claimed the United States and Iran had held productive discussions aimed at resolving the Middle East conflict.
However, oil prices later recovered as Israel and Iran continued exchanging strikes, with large explosions reported in Tehran and other cities. Iranian officials denied that any talks with Washington had taken place.
“Iranian people demand complete and remorseful punishment of the aggressors,” Iranian Parliament Speaker Mohammad Bagher Ghalibaf wrote in response to Trump’s comments.
He also said Trump’s recent rhetoric “is used to manipulate the financial and oil markets and escape the quagmire in which the U.S. and Israel are trapped.”
Iran’s foreign ministry added that Trump’s remarks were “part of efforts to reduce energy prices and buy time” for military planning.
With the conflict entering its 25th day and no clear signs of de-escalation, Saudi Arabia and the United Arab Emirates are reportedly moving closer to joining the confrontation with Iran, according to the Wall Street Journal.
Despite the broader market weakness, energy stocks recorded notable gains alongside the rebound in oil prices.
The NYSE Arca Oil Index jumped 2.6%, the NYSE Arca Natural Gas Index advanced 1.8%, and the Philadelphia Oil Service Index climbed 1.7%.
Networking stocks also extended their momentum after Monday’s rally, pushing the NYSE Arca Networking Index up 1.9%.
In contrast, software stocks moved sharply lower, dragging the Dow Jones U.S. Software Index down 3.5% to its lowest closing level in a month.
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