U.S. stock futures rose Tuesday night following a news report that the U.S. has given Iran a plan that could bring the conflict to an end.
S&P 500 futures and Nasdaq 100 futuresadvanced 0.7% and 0.9%, respectively. Futures tied to the Dow Jones Industrial Averagegained 320 points, or 0.7%.
During the day’s regular session, all three major averages posted losses. The S&P 500 slipped 0.37%, while the Nasdaq Composite lost 0.84%. The blue-chip Dow fell 84.41 points, or 0.18%.
The moves came after President Donald Trump on Tuesday said that the U.S. is “in negotiations right now” with Iran. He added that Tehran is “talking sense” and suggested it is eager to make a peace deal.
The New York Times reported Tuesday afternoon that the U.S. is said to have sent Iran a peace plan to end the war, citing two unnamed officials. The 15-point plan was delivered by way of Pakistan, the outlet said.
Stocks gave back some of their gains from Monday, which saw all three averages soaring more than 1% after Trump wrote in a Truth Social post that the U.S. and Iran have held “very good and productive conversations regarding a complete and total resolution of our hostilities in the Middle East.” However, Iranian state media denied reports of these direct talks between the two nations.
Oil prices resumed rising on Tuesday after falling the day before. Michael Kantrowitz, chief investment strategist at Piper Sandler, pointed to the commodity as the primary market driver in recent days.
“We continue to see this as just an oil-driven, one-variable market,” he said on CNBC’s “Closing Bell: Overtime” Tuesday afternoon. “Oil and interest rates are driving the equity market. And for now, I think markets are priced appropriately for where conditions are, and we’ll continue to move and react as conditions evolve.”
He added: “I’m less concerned about the economy. I think the U.S. economy can certainly handle $90, $100 oil. I’m a little more concerned about interest rates and the fear of persistent inflation weighing on equity multiples.”
Chewy and Paychex are set to report earnings Wednesday before the bell. Traders will also watch out for February’s readings on the export and import price indexes.
