Nasdaq and Dow Jones set for flat start as Trump hails 'amazing' Iran talks in two days
US stock futures were flat on Wednesday after a strong rally in the previous session, as investors paused for breath while watching developments around potential US-Iran talks.
All three major indices closed higher on Tuesday, with the Nasdaq climbing 2% to 23,639 points, the S&P 500 gaining 1.2% to 6,967 points, and the Dow Jones adding 0.7% to 48,535, held back by falls for energy supermajors and other oil producers.
Oil prices continue not to stand still. The prices of WTI crude briefly slipped below $90 a barrel overnight before recovering to around $92.5, as uncertainty persists over supply through the Strait of Hormuz.
Sentiment remains tied to geopolitics. President Donald Trump told Fox News they should be ready to watch “an amazing two days ahead”, adding to market hopes of progress in negotiations.
Earlier, he told the New York Post: “Something could be happening over the next two days”, with representatives from the administration likely to travel to Pakistan for a second round of negotiations.
Market analyst Kenny Polcari at Slatestone Wealth said “the market is betting on a deal and acting like it already happened”, pointing to a sharp rebound in risk assets.
He noted oil had “cracked 7%” on the idea that talks could resume, while the VIX broke below its trendline, signalling easing volatility.
Shipping data continues to highlight disruption, however, with traffic through the Strait of Hormuz still well below normal levels.
Attention now turns to earnings from Bank of America and Morgan Stanley later today, alongside the Federal Reserve’s Beige Book.