Stock Futures Slip as Trump Rejects Iran Peace Proposal

CNBC reported Sunday night that US stock futures edged lower after President Donald Trump publicly dismissed Iran’s latest ceasefire proposal, rattling markets that had just logged a strong winning run.

Futures Slip After Trump Calls Iran Offer Unacceptable

Dow futures shed roughly 143 points, or 0.3%, in overnight trading. Both S&P 500 and Nasdaq 100 futures also fell 0.3%. The pullback followed a week in which equity markets climbed sharply. The S&P 500 and Nasdaq each recorded a sixth consecutive weekly gain, a milestone neither index had achieved since 2024. The Dow posted its fifth weekly advance in six attempts.

Iran had submitted a new proposal to American negotiators, calling for an end to hostilities on all fronts and the removal of US sanctions on Tehran. The offer was confirmed by Iran’s semi-official Tasnim news agency. Trump responded swiftly on Truth Social, writing that he found Iran’s response “TOTALLY UNACCEPTABLE,” effectively slamming the door on a potential deal for now.

Oil Jumps as Geopolitical Risk Resurfaces

Energy markets reacted sharply to the diplomatic breakdown. West Texas Intermediate crude futures for June climbed nearly 4% to around $99.18 per barrel as of late Sunday. Brent crude for July rose roughly 3.5% to $104.83 per barrel. Higher oil prices feed directly into inflation expectations, adding pressure on the Federal Reserve’s policy calculus.

Background: A Rally Built on Fragile Optimism

Wall Street’s six-week rally was driven in part by hopes for a negotiated end to the US-Iran conflict. Friday’s session saw both the S&P 500 and Nasdaq close at all-time highs. A stronger-than-expected April jobs report added fuel, with nonfarm payrolls rising by 115,000 against economist forecasts of 55,000, according to a Dow Jones survey. The positive data helped mask underlying anxiety about the war’s longer-term economic drag.

Also Read: BlackRock’s Rick Rieder on War, Oil and the Macro Outlook

What Investors Are Watching This Week

Markets will now turn to incoming inflation data. April consumer and producer price index readings are due this week and could reveal how rising oil costs are feeding through to broader prices. Earnings from Under Armour and Cisco will also draw attention. BlackRock’s chief investment officer of global fixed income, Rick Rieder, offered a cautiously upbeat read. He acknowledged the economy may slow due to oil price pressure, but argued structural factors should keep conditions more resilient than widely feared.

Asia-Pacific markets opened the week on mixed footing. South Korea’s Kospi surged more than 4.7% to a fresh record, driven by semiconductor gains. China’s CSI 300 added 0.6%, while Japan’s Nikkei traded flat.

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