U.S. stock futures climbed in premarket trading on Wednesday as markets reacted positively to news that President Donald Trump had agreed to a temporary ceasefire with Iran and delayed planned strikes for two weeks while seeking a longer-term resolution.
Oil plunged more than 13% after the announcement, a move that reduced immediate inflation worries tied to energy prices and revived some investor hopes that the Federal Reserve could consider cutting interest rates later in the year. U.S. government bond yields fell in tandem, which provided additional relief to equities by lowering financing-rate pressure.
By 05:55 ET (09:55 GMT), S&P 500 futures were up 179 points, or 2.7%. Nasdaq 100 futures had risen 842 points, or 3.5%, and Dow Jones futures surged 1,213 points, or 2.6%.
Market action was sector-specific in the premarket session:
- Energy - Stocks in the energy complex retreated sharply, reflecting the steep drop in crude prices. Names including Chevron, Exxon Mobil, Venture Global, Occidental Petroleum, and ConocoPhillips saw pronounced declines.
- Airlines - Airline shares moved higher as easing geopolitical risk helps the travel outlook. United Airlines, Delta Air Lines, American Airlines, and Southwest Airlines were among the gainers.
- Precious metals and miners - Gold edged up from levels held down during the conflict, lending support to mining stocks. Newmont Gold Corp., Barrick Mining Gold, and Agnico Eagle Mines recorded gains.
- Financials - Major banking names climbed in the premarket, with JPMorgan Chase, Goldman Sachs, Bank of America, and Morgan Stanley trading higher.
Fertilizer-related stocks that had benefited from a recent spike in prices tied to the war in Iran reversed course. CF Industries and Nutrien both fell after earlier strength in fertilizer markets.
Technology-heavy large-cap names also contributed to the broader advance. The so-called Magnificent Seven - Meta Platforms, Tesla, Alphabet, Nvidia, Amazon, Microsoft, and Apple - were all trading higher in futures.
Apparel maker Levi Strauss stood out among individual corporate movers. The company jumped after raising its annual adjusted earnings-per-share and revenue guidance and reporting first-quarter results that beat expectations.
The market reaction underscores how a reduction in immediate geopolitical risk can cascade through commodity prices, bond yields and equity sectors in a short period, driving sharp premarket moves across energy, financials, miners, airlines and large-cap technology names.
Note: This report reflects premarket moves and company announcements disclosed publicly in the premarket session.