U.S. stock futures indicate a significantly lower start to Thursday’s session, suggesting markets may retreat after the gains recorded in the previous trading day.
Ongoing turbulence in oil markets is expected to weigh on investor sentiment, with international benchmark Brent crude futures jumping more than 5% after dropping over 2% during Wednesday’s session.
The rebound in oil prices comes as uncertainty persists over potential peace negotiations in the Middle East. Iran rejected a U.S. proposal to pause the conflict, stating that any halt to the fighting would only occur under Tehran’s own conditions and timeline.
In a message posted on Truth Social, President Donald Trump described Iranian negotiators as “very different” and “strange”, while claiming they are “begging” the United States to reach an agreement.
“They better get serious soon, before it is too late, because once that happens, there is NO TURNING BACK, and it won’t be pretty!” Trump warned.
Concerns about a potential expansion of the conflict may also pressure markets after several Gulf nations released a joint statement condemning Iran’s “criminal” attacks on their energy infrastructure.
“While we value our fraternal relations with the Republic of Iraq, we call on the Iraqi government to take the necessary measures to immediately halt the attacks … toward neighboring countries,” said the statement issued by the United Arab Emirates, Kuwait, Bahrain, Saudi Arabia, Qatar and Jordan.
The Gulf states also reiterated their right to self-defense and their ability to “take all necessary measures to safeguard our sovereignty, security, and stability.”
After ending Tuesday’s volatile session mostly lower, U.S. stocks rallied strongly in early trading on Wednesday. Although the major indexes lost some momentum later in the day, they still finished the session in positive territory.
The Nasdaq rose 167.93 points, or 0.8%, to close at 21,929.83. The Dow Jones Industrial Average added 305.43 points, or 0.7%, to 46,429.49, while the S&P 500 gained 35.53 points, or 0.5%, ending at 6,591.90.
The early rally on Wall Street followed a sharp pullback in oil prices, with Brent crude futures falling 1.7% after surging the previous day.
Oil prices retreated after the New York Times reported that the United States had delivered a 15-point proposal to Iran aimed at ending the conflict in the Middle East.
According to two officials briefed on the diplomatic discussions, the plan — transmitted through Pakistan — addresses both Iran’s ballistic missile program and its nuclear activities.
The report noted it remains unclear whether Iran would accept the proposal as the basis for negotiations but suggested the move indicates the U.S. administration is intensifying efforts to bring the conflict to a close.
As diplomatic activity increases, Iran has informed both the United Nations Security Council and the International Maritime Organization that “non-hostile vessels” may pass through the Strait of Hormuz with Tehran’s approval.
However, market optimism was partly tempered by reports from Iran’s state-linked Fars News Agency stating that Iran would not accept the U.S. ceasefire proposal.
“Iran does not accept the ceasefire,” an informed source told FARS, according to a translation published on the outlet’s Telegram page. “Basically, it is not logical to enter into such a process with the violators of the agreement.”
In U.S. economic news, the Labor Department released data showing import prices increased far more than expected in February.
The report showed import prices climbed 1.3% in February following an upwardly revised 0.6% rise in January.
Economists had anticipated a 0.5% increase, compared with the previously reported 0.2% gain in the prior month.
Export prices also surged by 1.5% in February after rising 0.6% in January, exceeding expectations for a 0.5% increase.
Among sectors, biotechnology stocks posted notable gains, lifting the NYSE Arca Biotechnology Index by 3.5%.
Gold mining shares also strengthened significantly as gold prices jumped, pushing the NYSE Arca Gold Bugs Index up 3%.
Airline, computer hardware and pharmaceutical stocks also recorded solid advances, joining most other major sectors in moving higher.