Wall Street Set for Rebound as Oil Prices Retreat Sharply: Dow Jones, S&P, Nasdaq, Futures
U.S. stock index futures are pointing to a stronger open on Tuesday, suggesting equities may recover some of the losses seen in the previous session.
A key driver behind the improved sentiment is a sharp decline in oil prices. U.S. crude futures are down more than 3% after surging over 4% on Monday, easing pressure on markets.
This drop comes even as geopolitical tensions in the Middle East remain elevated.
In an interview with Fox News on Monday, President Donald Trump warned that Iran would be “blown off the face of the earth” if it attacked U.S. vessels protecting commercial shipping through the Strait of Hormuz.
At the same time, Secretary of War Pete Hegseth stated on Tuesday that “two U.S. commercial ships, along with American destroyers, have already safely transited the strait, showing the lane is clear.”
Earnings Boost Sentiment
Investor sentiment is also being supported by upbeat corporate earnings. Shares of Anheuser-Busch InBev (NYSE:BUD) jumped 6.6% in premarket trading after the company reported first-quarter results that exceeded expectations on both revenue and profit.
Pfizer Inc. (NYSE:PFE) is also trading higher ahead of the open following better-than-expected quarterly results.
Previous Session Marked by Broad Losses
On Monday, markets struggled after a mixed start, with stocks trending lower as the session progressed. All major indices ended in negative territory, led by a sharp decline in the Dow.
The Dow Jones Industrial Average dropped 557.37 points, or 1.1%, to 48,941.90. The S&P 500 Index fell 29.37 points, or 0.4%, to 7,200.75, while the Nasdaq Composite declined 46.64 points, or 0.2%, to 25,067.80.
The selloff coincided with a spike in oil prices, as U.S. crude surged more than 4%.
Middle East Escalation Fuels Oil Surge
Oil prices jumped after a statement from the United Arab Emirates’ Defense Ministry said that four cruise missiles launched from Iran had been detected heading toward various parts of the country.
“Three were successfully engaged over the country’s territorial waters, while one fell in the sea,” the ministry said. “The Ministry of Defense affirmed that the sounds heard in different parts of the country are a result of air defence systems engaging threats.”
Further concern was sparked by a Reuters report indicating that a fire broke out in a major oil industry zone in the UAE following a drone attack attributed to Iran.
Over the weekend, President Donald Trump said he would review a new peace proposal from Iran, although he added he “can’t imagine that it would be acceptable.”
“They have not yet paid a big enough price for what they have done to Humanity, and the World, over the last 47 years,” Trump said in a post on Truth Social.
In another post, Trump stated that the U.S. would soon begin helping to “free” ships from non-involved countries stranded due to the closure of the Strait of Hormuz.
“If, in any way, this Humanitarian process is interfered with, that interference will, unfortunately, have to be dealt with forcefully,” he warned.
These developments come amid reports that Iran’s navy has blocked what it described as “American-Zionist” warships from entering the Strait.
Iranian state media also claimed that the Islamic Revolutionary Guard Corps struck a U.S. naval vessel with two missiles, although U.S. Central Command denied this, stating, “No U.S. Navy ships have been struck.”
Sector Performance
Transportation stocks were among the hardest hit, with the Dow Jones Transportation Average plunging 4.8%.
Housing-related stocks also declined significantly, as the Philadelphia Housing Sector Index dropped 3.4%.
Banking, steel and gold sectors were also under pressure, while oil producers and biotechnology stocks posted gains during the session.
Pfizer stock price
Anheuser Busch Inbev stock price