U.S. stock futures advance as Iran ceasefire offsets Strait of Hormuz risks

U.S. futures gain after Trump extends Iran ceasefire

By 07:15 ET (11:15 GMT) on Wednesday, Dow futures were up 228 points, or 0.5%, S&P 500 futures rose 36 points, or 0.5%, and Nasdaq 100 futures advanced 180 points, or 0.7%. The move followed U.S. President Donald Trump’s announcement, made after Tuesday’s cash close, of an indefinite extension to the ceasefire with Iran.

On Tuesday, the main Wall Street averages had ended lower as uncertainty surrounded fresh negotiations between the two countries. Analysts at Vital Knowledge described corporate earnings as a “bright spot” for U.S. equities, noting that most major companies had “either beat-and-reiterate or beat-and-raise” their guidance.

U.S. retail sales in March also exceeded expectations. However, the outperformance was attributed to an Iran-linked energy shock that drove a sharp increase in gas station sales, rather than broad-based consumer strength.

Oil market tension and corporate movers

Geopolitical risks in the energy market remained elevated. State media in Iran reported that the paramilitary Islamic Revolutionary Guards Corps had attacked a ship in the Strait of Hormuz on Wednesday, and three ships were reported attacked near the strategic waterway. Trump has said that an ongoing U.S. blockade of Iranian ports and coastline will remain in place. Brent crude futures traded higher, hovering just below $100 a barrel.

In U.S. premarket trading, several major stocks moved higher. United Airlines rose as the ceasefire extension tempered negative sentiment following underwhelming second-quarter and annual profit figures. GE Vernova gained after issuing an improved annual revenue forecast. Shares of AT&T advanced on better-than-expected wireless subscriber additions in the first quarter. Boeing also traded higher after reporting a quarterly loss that was smaller than estimated.

After the market close on Wednesday, earnings from Tesla are expected to be a key focus for investors, adding to an already busy corporate reporting backdrop.

FAQ

What are U.S. stock futures indicating for Wednesday’s session?
U.S. stock futures were higher, with Dow futures up 228 points (0.5%), S&P 500 futures up 36 points (0.5%), and Nasdaq 100 futures up 180 points (0.7%) by 07:15 ET.

How is the U.S.–Iran situation affecting markets?
An indefinite extension of the ceasefire announced by President Trump supported equity futures, but attacks on ships near the Strait of Hormuz and the continuation of a U.S. blockade of Iranian ports and coastline sustained concerns over oil supplies.

What is happening with oil prices?
Oil prices rose on Wednesday, with Brent crude futures trading just below $100 a barrel amid renewed tensions around the Strait of Hormuz.

Which major companies are moving in premarket trade?
United Airlines, GE Vernova, AT&T, and Boeing all traded higher in premarket activity, while Tesla’s earnings release after the close is expected to be in the spotlight.