Overview
U.S. stock futures were largely steady late Wednesday as market participants awaited an evening address from President Donald Trump regarding a possible de-escalation in Iran. The pause in futures followed a strong start to April for major U.S. indexes, where a combination of hopes for a ceasefire and bargain hunters stepping into beaten-down technology stocks helped spark a two-day rally.
Futures and index levels
By 19:28 ET (23:28 GMT), S&P 500 Futures were steady at 6,617.0 points. Nasdaq 100 Futures were flat at 24,193.75 points, while Dow Jones Futures held around 46,826.0 points.
Diplomatic signals and the president's address
Market attention centered on conflicting accounts about whether Iran had sought a ceasefire. President Trump had earlier posted that Iran’s "New Regime President" had requested a ceasefire, and said his administration would weigh the claimed request if the Strait of Hormuz were opened, while indicating U.S. attacks would continue until that condition was met. The president was scheduled to speak to the nation at 21:00 ET (01:00 GMT) and was widely expected to provide an update on the conflict, which reached a one-month duration earlier in the week.
State media in Iran, however, rejected the ceasefire claim. Iran’s Foreign Ministry denied that Tehran had asked for a ceasefire, and a report citing a senior Iranian official likewise indicated Tehran largely denied such a request. Those denials left the situation murky and provided a key source of uncertainty for markets awaiting the president's remarks.
Market reaction and oil dynamics
Oil prices moved sharply lower after the president's statements, which helped alleviate some investor concerns about the inflationary fallout from the Iran conflict. Still, oil had recorded a record monthly gain in March as the Middle East fighting significantly disrupted global supplies, a factor that remains relevant to inflation expectations and energy-sector earnings.
Equity market action
Wall Street indexes posted a two-day rally on hopes of an end to hostilities and due to bargain buying following a difficult March. On Wednesday, the S&P 500 rose 0.7%. The Dow Jones Industrial Average added 0.5%, and the NASDAQ Composite climbed 1.2%. All three indexes had advanced between 2% and 4% on Tuesday.
Technology stocks were a focal point for bargain-seeking investors after underperforming peers in March, as doubts about the pace of artificial-intelligence-driven disruption and softer chip demand had weighed on the sector.
Notable movers in aftermarket trading
Satellite-communications company Globalstar Inc (NASDAQ:GSAT) surged 16% to an 18-year high after a report said Amazon.com Inc (NASDAQ:AMZN) was in talks to buy the firm. Artificial-intelligence infrastructure provider Penguin Solutions Inc (NASDAQ:PENG) jumped 10% after reporting better-than-expected fiscal second-quarter results and raising its profit outlook.
Market participants entered the evening cautious but attentive to the president's speech and further confirmation about the ceasefire claims. Energy-market volatility and uneven signals from Tehran left risk sentiment finely balanced despite recent equity gains.