Dow Jones futures slip as traders adopt caution ahead of Trump’s Iran deadline
Dow Jones futures fall 0.2% to near 46,800 during European hours on Tuesday, ahead of the regular United States (US) open. Meanwhile, S&P 500 and Nasdaq 100 futures also decline 0.34% and 0.45% to near 6,620 and 24,250, respectively, at the time of writing.
US stock futures declined as traders prepared for US President Donald Trump’s approaching deadline for Iran to reopen the Strait of Hormuz. Trump had earlier warned that he could strike Iranian power plants and bridges if his demands are not fulfilled by 8:00 PM Eastern Time on Tuesday.
Moreover, Trump said on Monday that the latest proposal for a US ceasefire with Iran is “not good enough” ahead of his deadline for Tehran to reopen the Strait of Hormuz, though he noted it represents progress. “It’s a very significant step,” Trump added. “They’re negotiating now, and they’ve made a very significant step. We’ll see what happens.”
Meanwhile, Iran warned it would respond to any potential US strikes on civilian infrastructure by intensifying attacks on energy assets in the Gulf, a move that could further strain global energy supplies.
In regular US trading on Monday, the Dow Jones rose 0.36%, the S&P 500 advanced 0.44%, and the Nasdaq 100 increased 0.54%. Eight of the 11 S&P sectors closed in positive territory, with gains led by consumer discretionary, energy, and consumer staples.
Risk aversion increased as Iran's war lifted energy prices, fueling inflation fears and prompting a more hawkish Federal Reserve stance. Markets have fully priced in that the Federal Reserve will hold the federal funds rate steady this month, with borrowing costs likely to remain unchanged through year-end. CME Group’s FedWatch Tool indicates a 99.5% probability that the Fed will leave rates unchanged at the April meeting.
Traders are now looking ahead to the latest Federal Open Market Committee (FOMC) Meeting Minutes due on Wednesday, along with key inflation data set for release on Friday. On the corporate front, earnings from Delta Air Lines are also drawing attention this week.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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