Dow, S&P 500, Nasdaq futures pause rally after Iran says ceasefire has been broken
U.S. stock futures fell on Thursday, backing away from a strong rally sparked by the U.S.-Iran truce, as the one-day truce became increasingly fragile ahead of planned talks.
Dow Jones Industrial Average futures (YM=F) fell about 0.4% after closing above 1,300 points on Wednesday on expectations that the key benchmark will reopen the Strait of Hormuz. S&P 500 (ES=F) and Nasdaq 100 (NQ=F) contracts fell 0.4% and 0.3%, respectively.
The US and Iran’s two-week pause in hostilities in the Middle East appears to be in jeopardy. Each side accuses the other of violating the deal, which hinges on a key condition: Tehran reopening the Strait of Hormuz, a vital global oil shipping route that has been closed for weeks amid conflict.
However, Iran stopped tanker traffic once again. saying US ally Israel’s continued attacks on Lebanon violated the agreement. In response, President Trump said in a post on Truth Social that U.S. troops would be kept in the region until Tehran complies with the “real deal” — “which is unlikely, then the ‘shooting’ will begin — bigger and stronger than anyone has ever seen before.”
Oil prices rebounded from their biggest daily level since April 2020, rising 3% as concerns about supply disruption revived. International benchmark Brent crude futures (BZ=F) and its US counterpart West Texas Intermediate futures (CL=F) traded around $97 per barrel.
An update on U.S. inflation is due on Thursday, along with the February edition of the personal consumption expenditures price index, the Fed’s preferred measure of price pressure. Meanwhile, a read on weekly unemployment claims will also shed light on the health of the labor market.
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