U.S. equity futures climbed on Tuesday evening after President Donald Trump said he would extend a ceasefire with Iran indefinitely, an action that dampened immediate investor fears of renewed hostilities in the Middle East.
By 20:23 ET (00:23 GMT), S&P 500 futures were up 0.5% at 7,135.75 points, Nasdaq 100 futures had advanced 0.6% to 26,802.75 points, and Dow Jones futures traded 0.5% higher at 49,575.0 points.
The after-hours uptick followed a weaker cash session, in which the major U.S. equity indices finished lower as market participants pared risk exposure ahead of the ceasefire deadline. In the regular session, the Dow Jones Industrial Average, the S&P 500 and the NASDAQ Composite each posted declines of 0.6%.
The White House announcement arrived just hours before the truce was set to lapse. According to the statement, the extension is intended to provide additional time for negotiations between Washington and Tehran. While the extension reduced the immediate probability of military escalation, investors remained watchful because uncertainty persists regarding Iran’s reaction and the ultimate course of the talks.
Energy markets continued to be a focal point for traders. Oil prices held close to recent peaks on worries about potential supply disruptions in the Middle East, particularly around the strategically important Strait of Hormuz. Elevated crude prices have raised concern about renewed inflationary pressure, which in turn could complicate the outlook for monetary policy.
Economic data released on Tuesday showed March retail sales climbed 1.7% month-on-month, the largest monthly increase in a year and a beat versus forecasts. The report indicates consumer spending has remained resilient even as fuel costs have risen.
Attention now shifts to a slate of corporate results due before Wednesday’s opening bell that could set the tone for markets. Scheduled reports include telecom giant AT&T (NYSE:T), aircraft manufacturer Boeing (NYSE:BA), and power equipment maker GE Vernova (NYSE:GEV). Also due Wednesday are earnings from derivatives operator CME Group Inc (NASDAQ:CME) and ratings agency Moody's (NYSE:MCO). Market participants will watch these reports for signs of demand trends and margin pressure that may influence risk sentiment.
With geopolitical developments, energy prices and a busy earnings calendar all in play, investors are parsing incoming data and corporate news to determine near-term market direction.