U.S. stock futures advanced after President Donald Trump extended the two-week ceasefire with Iran, easing near-term risk and signaling tentative de-escalation. The S&P 500 and Nasdaq futures rose about 0.4%, while Dow futures gained roughly 186 points, even as the prior session closed lower on doubts a peace deal would be ready by the expiry deadline. Tehranâs stance and paused peace talks left the risk outlook fragile, with Iranian officials calling talks a waste of time and U.S. officials citing incomplete commitments. Analysts point to an AI-driven rally and rising productivity as supports to ongoing momentum despite geopolitical jitters. Earnings season begins ahead of Wednesdayâs open, testing how investors price in upcoming results against the political backdrop.
Dive Deeper:
Futures data showed the S&P 500 and Nasdaq 100 up about 0.4% and Dow futures higher by around 186 points after Trump extended the ceasefire with Iran, aiming to sustain market optimism.
Markets had closed lower earlier as traders mulled the likelihood that a peace agreement would not be in place by the ceasefireâs expiry, signaling cautious sentiment amid geopolitical risk.
Tehranâs response, including state media quotes that talks were a 'waste of time,' underscored ongoing uncertainty about whether Iran would engage constructively with U.S.-led discussions.
Despite the geopolitical noise, market strategists cited the AI boom and productivity gains as key drivers supporting a longer-term upside, even as near-term headlines create choppiness.
The weekâs earnings slateâAT&T, Boeing, Boston Scientific, GE Vernova, CME Group, Moodyâs among othersâwas set to test how results influence sentiment once the market reopens on Wednesday.