Stock Futures Slide as Trump Rejects Iran Ceasefire Proposal
CNBC reported early Monday that US stock futures edged lower after President Donald Trump flatly dismissed Iran’s latest peace proposal. The move sent oil prices sharply higher and cast a fresh shadow over markets following an otherwise strong week on Wall Street.
Trump Calls Iran Offer Unacceptable
Iran submitted a new counterproposal to American negotiators over the weekend. The offer, cited by Iran’s semi-official Tasnim news agency, called for an end to hostilities across all fronts and the lifting of sanctions on Tehran. Trump responded via Truth Social, writing that he had read the response and found it “TOTALLY UNACCEPTABLE.” The rejection immediately rippled through energy markets.
West Texas Intermediate crude futures jumped nearly 4% to approximately $99.18 per barrel in overnight trading. Brent crude climbed more than 3% to around $104.83 per barrel. Futures tied to the Dow Jones Industrial Average fell roughly 81 points, or 0.16%, while S&P 500 and Nasdaq 100 futures each posted modest declines.
Also Read: What Rising Oil Prices Mean for Global Inflation
A Winning Week Now Facing Headwinds
The pullback follows a remarkably strong run for US equities. The S&P 500 and Nasdaq Composite each gained more than 2% and 4% respectively last week. Both indexes recorded six consecutive weekly gains, a streak not seen since 2024. The Dow also posted its fifth winning week out of the last six.
Friday’s momentum was fuelled by a stronger-than-expected April jobs report. Nonfarm payrolls rose by 115,000, well above the 55,000 forecast from economists polled by Dow Jones. Both the S&P 500 and Nasdaq closed Friday’s session at all-time highs.
Also Read: April Jobs Report Beats Forecasts Despite Geopolitical Pressure
What Investors Are Watching Next
Not everyone is bracing for a sharp downturn. Rick Rieder, chief investment officer of global fixed income at BlackRock, acknowledged that the Iran conflict and the associated oil price shock could soften economic growth somewhat. He added, however, that larger structural forces should keep the broader economy in better shape than many forecasters currently anticipate.
Investors will turn their attention this week to April’s consumer price index and producer price index releases. Those reports may reveal how sustained oil price pressure is feeding into broader inflation. Earnings from companies including Under Armour and Cisco will also be closely watched.
Asia-Pacific markets traded mixed overnight. South Korea’s Kospi opened at a record high, lifted by a surge in chip-related stocks. Oil-sensitive markets in Australia dipped, while China’s CSI 300 posted a small gain.
