U.S. equity futures moved higher on Wednesday as investors grew more optimistic that Washington may be preparing to step back from the conflict in Iran. Oil prices also slipped below $100 per barrel, though they remain significantly above levels seen before the war began. Meanwhile, shares of Nike (NYSE:NKE) declined in after-hours trading following earnings, as sales weakness in China continues to weigh on the company.
Futures rise
U.S. stock futures pointed upward early Wednesday, with investors reacting positively to indications that the United States could soon wind down its military campaign in Iran, now entering its second month.
As of 03:25 ET, Dow futures were up 270 points, or 0.6%, S&P 500 futures had gained 43 points, or 0.7%, and Nasdaq 100 futures were higher by 227 points, or 1.0%.
Wall Street’s major indexes finished higher on Tuesday, supported by growing expectations that the United States may soon exit its joint military operations with Israel against Iran, a conflict that has expanded and raised concerns about broader regional escalation.
Part of that optimism followed a report from the Wall Street Journal stating that U.S. President Donald Trump had told advisers he may be willing to end the war even if shipping through the Strait of Hormuz remains largely restricted. Analysts at Vital Knowledge said later comments from Trump to reporters and on social media appeared to confirm the report.
Trump also repeated that negotiations with Iran are progressing positively, although officials in Tehran have often challenged that assertion. Iran has acknowledged that communications are ongoing between the two sides, and the country’s president said Iran has the “necessary will” to bring the conflict to an end if it receives assurances it will not face further attacks.
“Risk sentiment has been stabilizing as equities recover and bond spreads ease. Amid the mixed messaging, there were already signs that U.S. President Trump was looking for a way out; markets pounced on headlines that the Iranian president was willing to end the conflict, albeit sticking to Iran’s demands,” analysts at ING wrote in a note.
Oil falls after Trump signals
Oil markets showed some of the clearest signs of easing investor anxiety, with prices retreating below the $100 mark on Wednesday.
Brent crude, the global benchmark, was down 4.2% to $99.60 per barrel for the June futures contract. After the war began in late February, Brent surged to nearly $120 per barrel, compared with roughly $70 before the conflict.
Much of the earlier surge was driven by the near shutdown of shipping through the Strait of Hormuz, the strategic passage along Iran’s southern coast that normally carries about 20% of global oil supplies. Ongoing threats from Iranian drones and missile attacks sharply reduced tanker traffic, raising concerns about disruptions to global energy supply.
The energy price spike also heightened fears of renewed inflation, potentially forcing central banks to tighten monetary policy. These expectations pushed government bond yields higher and created additional pressure on equity markets.
Speaking to reporters in the Oval Office on Tuesday, Trump said the United States would be “leaving very soon,” adding that Washington’s objective of neutralizing Iran’s nuclear threat had been “attained” and that a formal agreement was not necessary to conclude the conflict.
However, Trump has not clarified what steps the U.S. intends to take regarding the Strait of Hormuz. On Tuesday he suggested that American allies should “take” responsibility for the waterway.
Gold rises
Gold prices continued to climb, extending gains for a fourth consecutive session during European trading.
Spot gold moved back above $4,700 per ounce. The metal rose 3.5% on Tuesday as the U.S. dollar weakened, though it still declined by more than 11% during March, marking its worst monthly performance since October 2008.
Higher interest rate expectations earlier in the month had weighed on the appeal of non-yielding gold. However, Federal Reserve Chair Jerome Powell helped calm some of those concerns this week, saying long-term U.S. inflation expectations remain stable and monetary policy is “in a good place to wait and see.”
According to ING analysts, gold remains exposed to risks from tighter liquidity conditions and a stronger dollar, although they noted that “so far pullbacks have been met with buying rather than a loss of confidence.”
Investors are also watching upcoming U.S. economic releases, particularly Friday’s nonfarm payrolls report, for clues about the future direction of monetary policy and currency markets.
Nike earnings
Away from geopolitical developments, Nike (NYSE:NKE) reported quarterly results that exceeded expectations on both revenue and earnings, but the company continued to face challenges in China and saw a decline in gross margin.
Shares of the sportswear giant fell in extended trading.
The results arrive as investors monitor CEO Elliott Hill’s turnaround strategy for signs of progress. The world’s largest footwear brand has been dealing with slowing revenue in China, margin pressure linked to tariffs and growing competition from brands such as China’s Anta and Li Ning, Switzerland’s On, and Deckers’ Hoka.
Nike reported earnings of $0.35 per share on revenue of $11.28 billion for its fiscal third quarter. Analysts had forecast $0.30 per share in earnings on $11.23 billion in revenue.
Sales in Greater China, which accounts for roughly 15% of Nike’s global revenue, fell 7% year over year to $1.62 billion, marking the seventh consecutive quarterly decline.
Microsoft energy project talks
In separate corporate news, Microsoft Corporation (NASDAQ:MSFT) is reportedly holding exclusive discussions with Chevron Corp (NYSE:CVX) and Engine No. 1 about developing a large-scale energy complex in West Texas to power a new data center hub, according to Bloomberg News.
The proposed natural gas-powered facility could cost around $7 billion and initially generate 2,500 megawatts of electricity, people familiar with the matter told Bloomberg.
The discussions come as Microsoft and other major artificial intelligence infrastructure providers race to expand computing capacity to support growing AI workloads, with reliable electricity supply becoming a crucial factor.
Microsoft is expected to invest as much as $146 billion in AI-related capital expenditures during its 2026 fiscal year.