Stock Futures Slip as Trump Rejects Iran Peace Proposal

CNBC reported Sunday that US stock futures slid after President Donald Trump publicly rejected Iran’s latest war-ending proposal, rattling investor sentiment heading into a new trading week.

Futures tied to the Dow Jones Industrial Average dropped roughly 143 points, or 0.3%, in Sunday evening trading. S&P 500 and Nasdaq 100 futures each fell by the same margin.

A Strong Week Meets a Rough Sunday Night

The pullback follows an impressive run for equities. The S&P 500 gained more than 2% last week, while the Nasdaq Composite surged over 4%. Both indexes posted their sixth consecutive winning week, a streak neither had achieved since 2024. The Dow rose around 0.2% for the week, marking five gains in the past six weeks.

Friday’s session was particularly strong. The April nonfarm payrolls report showed 115,000 new jobs added, well above the 55,000 economists polled by Dow Jones had forecast. Both the S&P 500 and Nasdaq closed Friday at all-time highs.

Iran Counteroffer Breaks the Momentum

Tehran submitted a new proposal to US negotiators over the weekend. The offer, cited by Iran’s semi-official Tasnim news agency, called for a comprehensive end to hostilities and the removal of sanctions. Trump responded swiftly on Truth Social, writing that Iran’s response was “TOTALLY UNACCEPTABLE.” Oil futures rose in overnight trading immediately after his remarks.

Background: Months of Conflict Weigh on Markets

The Iran war has been a persistent drag on investor confidence throughout 2026. Rising oil prices tied to the conflict have stoked inflation concerns, complicating the Federal Reserve’s policy calculations. Markets have nonetheless managed to grind higher, buoyed by resilient labor data and corporate earnings.

Rick Rieder, Chief Investment Officer of Global Fixed Income at BlackRock, offered a measured take, telling CNBC that the conflict and oil price shock could temper economic growth somewhat. He added, however, that structural forces remain robust enough to keep the broader economy in better shape than many observers anticipate.

What Investors Are Watching This Week

Traders will shift attention to April’s consumer price index and producer price index releases this week. Both figures could reveal how war-driven energy costs are filtering through to broader inflation. Earnings reports from companies including Under Armour and Cisco will also be on the radar.

The combination of geopolitical tension and key economic data makes this one of the more consequential weeks for markets in recent months.

Read Next: Trump Rejects Iran Deal Proposal, Oil Surges