US stock futures edged higher on Wednesday following stronger-than-expected private payrolls data and a report that Iran has indirectly approached the US to discuss terms for ending the escalating conflict.
Contracts on the S&P 500 (ES=F) rose 0.3% and the Nasdaq 100 (NQ=F) gained 0.5%. Dow Jones Industrial Average (YM=F) futures added 0.2% after the major US benchmarks closed sharply lower on Tuesday in a seesaw day on Wall Street.
The conflict that has whipsawed stocks entered its fifth day on Wednesday with fresh strikes by Israel on Tehran as Iran awaits the funeral of Supreme Leader Ali Khamenei, killed in weekend attacks. Worries over the fallout from hostilities helped drive Korea’s main benchmark to its biggest one-day crash on record.
But stocks gained on Wall Street following an early Wednesday New York Times report about Iran’s Ministry of Intelligence approaching the CIA through another nation’s spy agency. However, US officials are said to be unconvinced by the move, and analysts downplayed the bid to negotiate as it was made soon after the fighting began.
Geopolitical tensions have been spurring volatility in US stocks, with dip-buyers playing a part as prices tumbled. Some on Wall Street have warned against counting on President Trump to “chicken out” and rescue stocks.
Trump said on Tuesday that the US would provide insurance and escorts for oil tankers to try to restore traffic through the crucial Strait of Hormuz, stalled amid threats from Iran. The promise of safe passage came as soaring oil prices threatened to bump up inflation, curbing the scope for US interest rate cuts.
Oil prices pared gains on news of the Iran outreach, with Brent crude futures (BZ=F) trading near $82 a barrel and West Texas Intermediate futures (CL=F) trading at about $75.
Data from ADP showed that the private sector added 63,000 jobs in February, exceeding economist estimates of 50,000. The figures will set expectations for Federal Reserve action on interest rates as a health check on the labor market ahead of Friday’s crucial monthly jobs report.
Meanwhile, earnings take on a muted focus this week, with reports from Broadcom (AVGO), Costco (COST), and Alibaba (BABA) highlighting the coming days.
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Private sector added 63,000 jobs in February, per ADP; chief economist says hiring ‘concentrated in only a few sectors’
Private-sector employment increased by 63,000 jobs in February, according to data released Wednesday morning by data provider ADP — healthily exceeding economist estimates of 50,000 jobs added and marking the best monthly showing for gains since July 2025.
“Service-providing” sectors accounted for 47,000 new jobs, while “goods-producing sectors” added 16,000, ADP said.
While the numbers are stronger than expected, comments from ADP tempered the gains.
“We’ve seen an increase in hiring and pay gains remain solid, especially for job-stayers,” said Nela Richardson, chief economist at ADP. “But with hiring concentrated in only a few sectors, our data shows no widespread pay benefit from changing jobs. In fact, the pay premium for switching employers hit a record low in February.”
ADP’s private payrolls figures give investors a preview of what’s to come on Friday, when the Bureau of Labor Statistics releases its critical monthly payrolls data. Economists are expecting 000 jobs added, according to consensus estimates compiled by Bloomberg — roughly in line with the estimates that preceded January’s blowout report of 130,000 additions.
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Oil prices steady after President Trump offers tankers protection through Strait of Hormuz
Oil prices pared gains on Wednesday morning after fears of a full-blown shipping crisis were temporarily averted following President Trump’s offer to insure and even escort tankers through the Strait of Hormuz.
Futures on Brent crude (BZ=F), the international pricing benchmark, eased to below $82 per barrel after reaching $84 on Tuesday. Futures for West Texas Intermediate crude (CL=F), the US benchmark, fell to $74 from $77.
Yahoo Finance’s Brooke DiPalma and Jake Conley report:
Read more here.
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Why markets might be having a change of heart about the Iran war
Yahoo Finance’s Hamza Shaban writes:
Read more here in today’s takeaway from the Morning Brief.
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Wall Street strategists warn not to bet on Trump rescuing stocks rattled by Iran war
Bloomberg reports:
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Gold gains as dip-buyers enter market despite dollar strength
From Bloomberg:
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Goldman’s still ‘no go’ on oil price super-surge
Goldman Sachs still isn’t predicting oil (CL=F, BZ=F) will surge to $100-plus a barrel amid the escalation of the Israeli and US attacks against Iran.
This is what its team just laid out this morning:
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Premarket trending tickers: Strategy, Ross Stores, Moderna and Gitlab
Strategy (MSTR) stock rose 8% before the bell on Wednesday, following a 6% rise in bitcoin. Strategy is one of the largest corporate holders of the cryptocurrency.
Ross Stores’ (ROST) stock jumped 5% during premarket trading on Wednesday following the release of its fourth-quarter results, which beat analyst estimates.
Moderna (MRNA) stock rose 3% before the bell today. The pharmaceutical company said it had reached a deal to resolve a dispute relating to its COVID vaccine.
GitLab (GTLB) shares fell 9% in premarket trading on Wednesday after the company announced it expects sales to slow this year. The software company outlined initiatives to help boost its guidance.
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Global funds unwind hottest AI trades as inflation fears mount
Bloomberg reports:
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Asian markets fall, Korean exchange closes as Iran fallout drives benchmarks down
Reuters reports:
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Oil continues to rise as Hormuz blockade rattles markets
Bloomberg reports:
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