US stock futures slipped Tuesday, pausing after a sharp rebound on Wall Street that was driven by growing optimism around a potential easing of tensions between Washington and Tehran.
Contracts linked to the S&P 500 (ES=F), the Dow Jones Industrial Average (YM=F), and the Nasdaq 100 futures (NQ=F) all slipped 0.1%.
Oil prices retreated sharply on the news of hostilities potentially winding down, but rebounded as fighting between Iran and the US-Israeli alliance continued. West Texas Intermediate (CL=F) crude rose 2%, back above $90 a barrel, while Brent (BZ=F) jumped back above $101.
Markets soared Monday after President Trump said the US had engaged in “very good and productive” discussions with Iran aimed at resolving hostilities. The positive sentiment faded somewhat after Iranian state media pushed back on the claim, saying that no direct negotiations had taken place.
The developments followed a tense weekend, during which Trump warned of potential strikes on Iranian energy infrastructure if the Strait of Hormuz was not opened. Iran responded with threats targeting US assets, raising concerns about further escalation.
Looking forward, investors will turn their attention to upcoming US manufacturing data due Tuesday morning, as well as eyeing the end of earnings season, with GameStop (GME) due to report after the close.
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