U.S. stock index futures moved modestly higher late on Thursday after President Donald Trump announced an extension of a deadline to target Iran's energy infrastructure, injecting a short-lived sense of possible de-escalation into markets.
By 20:39 ET (00:39 GMT), S&P 500 futures were up 0.2% at 6,538.0 points, Nasdaq 100 futures had risen 0.1% to 23,823.25 points, and Dow Jones futures were 0.3% higher at 46,347.0 points. Those advances followed a day of sizable losses in the cash market, where investors reacted to mixed signals on the prospects for diplomacy and to a rebound in crude prices.
Futures had climbed as much as 0.5% earlier in the session, reflecting hopes that the extension could lower the immediate probability of strikes on critical Iranian energy sites. The optimism faded after a Wall Street Journal report said the Pentagon was considering sending an additional 10,000 troops to the Middle East. That prospective force would join roughly 5,000 Marines and paratroopers already in the region and would likely be positioned within striking distance of Iran and key oil-export infrastructure at Kharg Island.
The reported troop considerations dented expectations for a rapid de-escalation, even as the White House framed the development differently. President Trump posted that he would prolong the deadline to April 6 - a roughly 10-day extension from a prior cutoff that had been set to expire on Friday. The president said Iran had requested the delay and that talks with Tehran were progressing, though he did not provide additional details.
Trump also asserted that Iran had permitted 10 oil tankers to transit the Strait of Hormuz, the strategically vital channel that supplies about 20% of global oil consumption. The president's deadline for any strikes on Iranian energy infrastructure had been conditional on Tehran reopening the Strait, according to his post.
Market sentiment remained fragile after a sharp sell-off in the main Wall Street session. The S&P 500 fell 1.7% and the Dow Jones Industrial Average dropped 1% as investors fled risk assets. The Nasdaq Composite underperformed, slipping into correction territory by closing more than 10% below its most recent record closing high.
Large technology companies were notable contributors to the market weakness. Meta Platforms Inc fell 7% after two separate verdicts found the social media company liable for harming young users. Nvidia declined 4% amid investor concern about rising competition in artificial intelligence chips after Arm Holdings unveiled a new data center chip. The negative moves among major tech names amplified the broader market decline.
Geopolitical developments continued to offer mixed signals. Tehran said officials were reviewing a 15-point ceasefire proposal submitted by Washington, while senior Iranian figures largely dismissed the notion of direct talks with the United States. Iran's foreign minister, Abbas Araghchi, asserted that an exchange of messages via intermediaries did not amount to negotiations.
Iran has also floated its own five-point ceasefire plan, which, according to the available details, calls for reparations from the U.S. and Israel and proposes the establishment of a toll system in the Strait of Hormuz. These competing proposals and the lack of a clear pathway to direct diplomacy left markets parsing contradictory cues.
In summary, the late-session rise in futures reflected a temporary reprieve tied to the president's extension of a conditional deadline on strikes against Iranian energy infrastructure. That relief was dampened by reports of potential U.S. troop reinforcements in the region and by broader market pressures including higher oil prices and significant losses among large technology stocks.
Impacted market areas and note on data:
- Energy markets - the Strait of Hormuz and oil exports are central to the geopolitical tensions referenced.
- Equity markets - major U.S. indexes and futures showed volatility in response to the geopolitical and corporate developments.
- Technology sector - outsized moves in large-cap tech names contributed materially to index performance.