Dow futures rise on Trump pausing 'Project Freedom', oil fall; Nasdaq gets an AMD boost

Futures on Wall Street rose after regular trading on Tuesday. Dow futures, after an initial dip, are now up nearly 100 points after US President Donald Trump cited “great progress” in talks with Iran and also announced a “pause” to “Project Freedom” to see if an agreement can be reached and signed.

Trump had announced “Project Freedom” to ensure a safe passage of vessels through the Strait of Hormuz. Oil prices have extended their losses from Monday, after Trump’s announcement.

While the Dow futures have received a boost after Trump’s announcement, the S&P 500 and Nasdaq futures were already trading higher by 30 points and 240 points respectively after a strong post-market result and guidance by Nvidia-rival AMD, which sent the stock soaring by 12% in extended trading, thereby boosting futures.
Benchmark indices on Wall Street rebounded after a weak session on Monday. The Dow Jones gained over 350 points, recovering most of Monday’s sell-off, while the S&P 500 and Nasdaq gained 0.8% and 1% respectively, adding another day of record highs to their tally this year.

Stocks rose after the US indicated on Tuesday that “Operation Epic Fury” has concluded, 66 days after the US first began to bomb Iran, and that their objectives were achieved. Secretary of State Marco Rubio said that the operations currently on in the Strait are defensive ones and the US will only fire if fired upon. The US also maintained that the ceasefire remains in place despite Iran’s attacks on the UAE on Monday.

Macro data reported on Tuesday was mixed, with the Services PMI coming in at 51.2 for April, compared to estimates of 53. Trade deficit also widened by 4% to $60.2 billion compared to estimates of a $61 billion figure. JOLTS job openings were little changed from February.