S&P 500 futures tick higher after index erases Iran war losses Futures tied to the S&P 500 ticked higher early Tuesday, following a strong session in which traders shrugged off a breakdown in peace talks between the U.S. and Iran, yet were optimistic that a deal between the two countries was still possible.
S&P 500
futures
rose 0.2%, while the
Dow Jones Industrial Average
added 70 points, or 0.14%. Nasdaq-100 futures
climbed 0.34%.
Wall Street once again proved resilient in the face of increased geopolitical uncertainty. The major averages posted solid gains to start the week even after U.S.-Iran negotiations over the weekend broke down. President Donald Trump also said Monday that, “We’ve been called by the other side.” He also said: “They’d like to make a deal very badly.”
Monday’s gains erased the S&P 500 losses suffered since the Iran war began.
The market does have a really good way of discounting outcomes. And I think the reason it’s going up is ... we’re gonna end up with a favorable outcome,” said Tom Lee, head of research at Fundstrat Global Advisors, on CNBC’s “Power Lunch” Monday.
Investors on Monday were also able to shrug off a jump in oil prices. West Texas Intermediate crude futures
settled up 2.6% at $99.08 a barrel, while Brent crude
advanced more than 4% to $99.36. Energy prices rose as the U.S. began a blockade in the Strait of Hormuz.
Heading into Tuesday’s session, investors will brace for the release of major bank earnings, with JPMorgan Chase and Wells Fargo set to report.
Those numbers will follow a mixed report from Goldman Sachs. Shares declined Monday after the company’s first-quarter fixed income trading revenue fell by 10% from the year-earlier period. That overshadowed a huge spike in investment banking fees and an overall profit that beat analyst expectations.Asia-Pacific markets rise on optimism over Iran-U.S. deal
Asia-Pacific markets opened higher Tuesday, amid hopes that a deal between Washington and Tehran was still possible even as the U.S. blockades Iranian shipments in the Strait of Hormuz.
Japan’s Nikkei 225
rose 2.43%, while the Topix gained 1.01%.
Australia’s S&P/ASX 200 was 0.53% higher. Australian business confidence in March dropped, weighed by concerns over the Iran war that had led to a global oil shock, according to a survey from National Australia Bank, Reuters reported.
Mainland China’s CSI 300 index rose 0.65%, while Hong Kong’s Hang Seng index was 1% higher. Investors in Asia will be watching out for China trade data later in the day.
The West Texas Intermediate crude was 2.37% lower at $96.73 per barrel as of 8:00 p.m. ET. Brent crude declined 1.82% to $97.51 per barrel.
