U.S. stock futures moved higher ahead of Monday’s opening bell, pointing to another positive session after last week’s gains, as a steep decline in crude oil prices improved investor sentiment.
The retreat in oil prices followed comments from U.S. President Donald Trump, who announced that a planned military strike against Iran had been suspended in favor of renewed diplomatic negotiations.
Trump Pauses Military Action
Posting on Truth Social, Trump said the United States had agreed to postpone military action after Iran and several Middle Eastern nations requested additional time to finalize an agreement.
“We have just been asked by Iran, and other Middle Eastern Countries, to hold off any attack in that the perimeters of a deal has been agreed to,” Trump said. “This would include the Immediate, Complete, and Total OPENING OF THE HORMUZ STRAIT, and an end to Iran’s nuclear threat.”
He continued: “Based on this request, I have agreed, for the future benefit of the WORLD and, likewise, the survival of a successful and prosperous Iran, to cancel the attack, subject to being able to rapidly make a DEAL.”
The announcement sent U.S. crude futures down almost 7%, easing concerns over potential disruptions to global oil supplies.
Markets Await Key Economic Data
Although lower oil prices provided a boost to risk appetite, investors remained cautious ahead of Friday’s U.S. nonfarm payrolls report, which is expected to play an important role in shaping expectations for future Federal Reserve interest-rate decisions.
Market participants also remain wary after previous attempts to ease tensions between Washington and Tehran proved temporary.
Stocks Ended Last Week with Strong Gains
Wall Street finished Friday’s session on a positive note, with all three major benchmarks extending their weekly advances.
The Nasdaq climbed 251.68 points, or 1.0%, to 25,373.85, the S&P 500 gained 52.09 points, or 0.7%, to 7,489.72, and the Dow Jones Industrial Average rose 276.97 points, or 0.5%, to 52,485.03.
Over the course of the week, the Nasdaq advanced 1.5%, while the S&P 500 and Dow both gained more than 1%.
Amazon Boosts Market Confidence
Amazon (NASDAQ:AMZN) led Friday’s rally after delivering quarterly revenue and cloud computing growth that exceeded expectations, sending its shares up 15.3% to their highest closing level in two months.
Investor sentiment also improved as crude prices retreated after an earlier spike driven by reports that Iran had attacked commercial tankers travelling through the Strait of Hormuz under U.S. military escort.
Treasury Yields Continue Higher
U.S. Treasury yields continued to rise, with the benchmark 10-year yield reaching its highest level since early 2025.
The move reflected persistent inflation concerns and comments from Federal Reserve policymakers supporting tighter monetary policy.
Minneapolis Fed President Tushar Kashkari said:
“If inflation remains elevated, in my view, a potential series of small policy moves would be better than waiting and eventually concluding that even bolder actions were necessary.”
He added:
“On the other hand, if inflation durably fades, a strategy of small policy steps would allow the FOMC to slow or pause subsequent adjustments without unnecessary impact on the real economy.”
Cleveland Fed President Beth Hammack also argued that policymakers should continue acting against inflation.
“The longer that high inflation persists, the more challenging and costly it can be to bring it back down,” Hammack said. “I preferred to move at our recent meeting because I did not see the current policy stance as appropriately restrictive.”
Sector Performance
Retail shares led Friday’s gains, with the Dow Jones U.S. Retail Index rising 6.6%, supported by Amazon’s strong results.
Oil service companies also advanced after crude prices had surged earlier in the session, lifting the Philadelphia Oil Service Index by 2.5%.
Networking stocks recorded solid gains as well, while gold miners weakened alongside lower bullion prices. Biotechnology shares also underperformed, with the NYSE Arca Biotechnology Index ending the session down 2.9%.
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