Dow Jones futures slip due to fading US-Iran ceasefire optimism
Dow Jones futures fall 0.36% to near 47,950 during European hours on Thursday, ahead of the regular opening in the United States (US). Meanwhile, S&P 500 and Nasdaq 100 futures also lose 0.38% and 0.37% to near 6,800 and 25,000, respectively, at the time of writing.
US stock futures come under pressure amid fading optimism, with reports suggesting that Iranian Parliament Speaker Mohammad Bagher Ghalibaf said the US breached three key clauses of Iran’s 10-point proposal, calling further talks “unreasonable.” Meanwhile, US Vice President JD Vance signaled that the strait could begin reopening as he leads a US delegation to Islamabad for direct talks with Iran this weekend.
The Middle East conflict, now in its second month, has lifted energy prices and heightened inflation risks, reinforcing expectations that global central banks may keep policy tighter for longer. US Federal Reserve’s (Fed) March Meeting Minutes suggest the central bank remains in a wait-and-see stance, while acknowledging that risks are becoming more balanced. Traders will likely observe the US Consumer Price Index (CPI) report for March, due on Friday.
Oil prices recovered modestly on renewed supply concerns after Iranian media reported a halt in tanker traffic through the Strait of Hormuz following fresh Israeli strikes in Lebanon. Officials said recent developments breach the terms of the less-than-day-old ceasefire, calling it “unreasonable” to continue talks for a permanent deal with the United States.
In regular US trading on Wednesday, the Dow Jones surged 2.85%, the S&P 500 gained 2.51%, and the Nasdaq 100 rose 2.8% after the US and Iran agreed to a two-week ceasefire aimed at facilitating negotiations toward a potential resolution to the conflict.
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