US pre-open: Futures higher as Trump reportedly weighs end to Iran military action

(Sharecast News) - Wall Street futures were in the green ahead of the open on Tuesday after Donald Trump reportedly told aides that he was prepared to end military operations in Iran. As of 1300 BST, Dow Jones futures were up 0.91%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.92% and 0.86% firmer, respectively.

The Dow closed 49.50 points higher on Monday, after Fed head Jerome Powell said inflation expectations were "well anchored" beyond the short term and that there was no need for any further interest rate hikes at this time.

Futures traded higher after a Wall Street Journal report said Trump had told aides he was prepared to end military operations in the Middle East even if the Strait of Hormuz was largely closed.

Oil prices traded higher after Bloomberg reported that Iran had struck a Kuwaiti oil tanker in UAE waters, with Dubai's government media office later stating that no injuries were reported and that "the safety of all 24 crew members has been secured". However, benchmark Brent crude fell 0.9% after the WSJ report, dropping to $101.91 a barrel, while West Texas Intermediate slipped 0.83% to $106.45 a barrel.

Scope Markets' Joshua Mahony said: "Global markets are breathing a sigh of relief this morning as the "war premium" begins to erode, triggered by reports that President Trump is prioritizing a diplomatic off-ramp over continued military escalation. Reports that Trump is willing to conclude the campaign against Iran despite their control of the Straits of Hormuz does signal a willingness to deescalate to avoid a "forever war" in the Middle East.

"The buildup of US troops in the region highlights the potential escalation ahead, and thus much of Trump's commentary has been chiefly aimed at calming markets to buy himself more time. As such, while we are seeing a welcome period of strength this morning, it pays to remain sceptical given the fact that every such rally has preceded a new low."

On the macro front, January's S&P/Case-Shiller housing price index will be published at 1400 BST, while March's Chicago PMI was slated for release at 1445 BST, and March consumer confidence data and February's JOLTS job openings numbers will follow at 1500 BST.

In the corporate space, Nike will report earnings after the close of trading.











Reporting by Iain Gilbert at Sharecast.com