Stock Futures Slip as Trump Rejects Iran Peace Proposal

US stock index futures slipped early Monday, CNBC reported, after President Donald Trump publicly dismissed Iran’s latest ceasefire offer and crude oil prices climbed sharply overnight.

S&P 500 futures fell roughly 0.1% and Nasdaq 100 futures dropped around 0.13%. Dow Jones Industrial Average futures were broadly flat. Iran war talks had briefly lifted hopes of a diplomatic resolution, but Trump’s rejection rattled early sentiment.

A Six-Week Rally Meets Geopolitical Friction

The mild futures decline follows an unusually strong stretch for equities. Both the S&P 500 and the Nasdaq Composite finished last week at all-time highs. Each index has now logged six consecutive weeks of gains, a run neither has achieved since 2024. The Dow added 0.2% last week for its fifth positive week in six.

Friday’s session was itself powered by a surprisingly robust jobs print. April nonfarm payrolls rose by 115,000, more than double the 55,000 economists polled by Dow Jones had forecast.

Iran War Talks Stall on Sanctions Dispute

Iran submitted a fresh proposal to American negotiators over the weekend. The offer, cited by the semi-official Tasnim news agency, called for halting hostilities across all fronts and removing economic sanctions on Tehran. Trump responded directly on Truth Social, calling the proposal “TOTALLY UNACCEPTABLE!” Oil futures reacted quickly. West Texas Intermediate for June surged nearly 4% to approach $99 per barrel in overnight trading.

BlackRock Urges Calm Despite Oil Shock Risk

Not everyone sees the breakdown as a market-defining moment. BlackRock Global Fixed Income CIO Rick Rieder said the Iran conflict and resulting oil price pressure could trim economic output. But he argued that deeper structural forces should keep the broader economy more resilient than widely feared. Investors will be watching April consumer and producer price index readings this week for early signals on whether energy costs are feeding into inflation more broadly. Earnings from Under Armour and Cisco also land this week.

Asian and European Markets Diverge

Reaction across other regions was uneven. South Korea’s Kospi surged more than 4.7% to a fresh record, partly driven by a 10%-plus gain in chipmaker SK Hynix tracking US semiconductor stocks. European markets were mixed. London, Frankfurt and Milan posted modest gains, while Paris slipped. Defense stocks fell sharply after Ukraine reported fresh Russian drone strikes over the weekend, apparently breaking a brief ceasefire. Italian defense group Leonardo dropped 4.6% and Germany’s Rheinmetall shed more than 3%.

Read Next: Fed Holds Rates Steady as Inflation Data Stays Elevated