US stock futures jumped sharply after US President Donald Trump announced that the United States and Iran had held positive and productive talks over the past two days, with his decision to halt any potential strikes on Iranian power plants and infrastructure.
Dow Jones Industrial Average futures rose by about 1,100 points, or 2.6%, while Standard & Poor's 500 futures climbed 2.7%, and Nasdaq 100 futures jumped 2.7%.
In contrast, oil prices fell sharply following Trump's remarks, with West Texas Intermediate crude futures dropping more than 9% to below $90 a barrel, while the global benchmark Brent crude fell more than 13% to below $97 a barrel.
Trump said in a post on Truth Social that the United States and Iran had held “very good and productive talks” over the past two days regarding reaching a complete solution to tensions in the Middle East, adding that he had directed the Department of Defense to postpone any military strikes against Iranian energy facilities for five days, subject to the results of the ongoing talks.
This announcement came as the trade war with Iran entered its fifth week, amid escalating tensions over the weekend after Trump threatened to target Iranian energy facilities if the Strait of Hormuz, a vital shipping lane for oil and energy products, was not reopened. Iran responded by warning that it would target American infrastructure, including energy and desalination plants in the Gulf region, if Washington carried out its threats.
The preliminary reading of the US Purchasing Managers' Index (PMI) from S&P Global is due to be released Tuesday morning.
Investors are also monitoring support levels in the market, after the S&P 500 index broke its 200-day moving average last week for the first time since May.
US indices posted weekly losses, with the Dow Jones and Nasdaq both falling by about 2%, while the S&P 500 declined by 1.5%, marking its first four-week losing streak since 2023.
