Dow, S&P 500, Nasdaq futures pause rally as Iran claims ceasefire broken in under 24 hours

U.S. stock futures were largely flat Wednesday night, pausing a strong rally that began on news that the U.S.-Israel coalition and Iran had agreed to a two-week ceasefire.

Futures contracts tied to the S&P 500 (ES=F) and Dow (YM=F) fell about 0.1%, while Nasdaq 100 (NQ=F) contracts fell 0.2%.

The quiet overnight move followed a sharp recovery during the regular session. The S&P 500 (^GSPC) gained 2.5%, while the tech-heavy Nasdaq Composite (^IXIC) gained 2.8%. The Dow Jones Industrial Average (^DJI) rose more than 1,300 points in the index’s biggest single-day performance since April 2025.

The demonstration took place after talks to reduce tensions between the United States and Iran. Trump announced late Tuesday that Washington would pause attacks on Iran, citing a proposal Tehran described as “feasible” to restart talks.

The temporary ceasefire is conditional on one key condition: the reopening of the Strait of Hormuz, a vital global oil shipping route that has been closed for weeks amid the conflict. Iranian officials initially signaled that the pass would be temporarily reopened if hostilities ended.

But a Message from the speaker of the Iranian parliament to X He claims that Israel has already broken the ceasefire with attacks on Lebanon, leading to the continued closure of the waterway.

Brent (BZ=F) and West Texas Intermediate (CL=F) crude oil futures rose 2.5% and 2.8% after hours following news of the strait being blocked. This follows declines of more than 13% on Wednesday as oil fell below $100 a barrel.

Looking ahead, investors are preparing for key economic data on Thursday. The final reading of the personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge, will be released before the market opens, along with weekly unemployment claims.