Dow Jones futures rose by 0.81%, climbing above 45,800 during European hours ahead of the US regular market open on Tuesday, while S&P 500 and Nasdaq 100 futures advanced 0.78% and 0.54% to near 6,440 and 23,260, respectively [1]. The uptick in US stock futures was attributed to easing risk aversion and lower oil prices, with market sentiment buoyed by rising expectations that US President Donald Trump could bring the Iran conflict to an end. The Wall Street Journal reported that Trump indicated to aides he may stop the campaign even if the Strait of Hormuz remains largely closed. However, analysts cautioned that the recent oil price decline may be short-lived, noting that a sustained drop would require a full restoration of shipping flows through the strait [1].
Market sentiment was further improved by dovish remarks from Federal Reserve Chair Jerome Powell, who reiterated that long-term US inflation expectations remain well anchored despite escalating Middle East tensions. Powell emphasized that the Fed’s current policy setting allows policymakers room to evaluate the broader economic effects of the Iran conflict [1].
During Monday’s regular US session, the Dow Jones edged up 0.11%, while the S&P 500 and Nasdaq 100 fell 0.39% and 0.73%, respectively. The S&P 500 is now down just over 9% from its recent closing peak, largely due to weakness in technology stocks, which dropped more than 1%. Art Hogan of B. Riley Wealth Management described the pullback as a typical market correction, noting that declines of around 10% are common in longer-term market cycles, as reported by CNBC [1].
CONCLUSION
Dow Jones futures and other major US indices rebounded on improved sentiment driven by easing risk aversion, lower oil prices, and dovish Fed commentary. Despite recent declines, analysts view the pullback as a normal correction within broader market cycles. The market remains attentive to developments in the Iran conflict and Fed policy outlook.