U.S. stock futures are pointing to a lower start on Tuesday, suggesting equities could move back into negative territory after staging a recovery from an early sell-off to finish the previous session mostly higher.
Ongoing worries surrounding the conflict in the Middle East may weigh on investor sentiment, particularly as crude oil prices regain some ground following a sharp overnight drop.
Crude for April delivery had plunged nearly 11% to a low of $84.43 per barrel before rebounding to trade above $90.
The swings in oil prices reflect continued uncertainty over the U.S. conflict with Iran following recent comments from President Donald Trump.
During a press conference on Monday, Trump said the war against Iran could end “very soon,” though he offered few specifics about how the conflict might conclude.
In a later message on Truth Social, Trump warned that Iran would be hit “twenty times harder” if it takes any action that disrupts oil shipments through the Strait of Hormuz.
“We will take out easily destroyable targets that will make it virtually impossible for Iran to ever be built back, as a Nation, again — Death, Fire, and Fury will reign upon them — But I hope, and pray, that it does not happen!” Trump said.
Echoing the president’s tone, Defense Secretary Pete Hegseth said at a press briefing Tuesday morning that Iran is “badly losing,” but indicated the United States would still carry out its “most intense day of strikes” in Iran later today.
Stocks had dropped sharply at the start of trading on Monday but later reversed course, climbing back from their worst levels and ultimately closing higher. The tech-focused Nasdaq led the rebound.
In the final hour of trading, the major averages extended their gains and finished close to session highs. The Nasdaq rose 308.27 points, or 1.4%, to 22,695.95, the S&P 500 gained 55.96 points, or 0.8%, to 6,795.99, and the Dow added 239.25 points, or 0.5%, to 47,740.80.
Earlier in the day, the Dow had fallen as much as 1.9%, while both the Nasdaq and the S&P 500 dropped up to 1.5%, marking their weakest intraday levels in more than three months.
The late-session rally came after reports that President Trump told a CBS News reporter the U.S. conflict with Iran could end soon.
CBS News Senior White House Correspondent Weijia Jiang wrote on X that Trump told her, “I think the war is very complete, pretty much. They have no navy, no communications, they’ve got no Air Force.”
According to Jiang, Trump also said the U.S. was “very far” ahead of his initial four- to five-week timeline for the conflict.
In another post, Jiang reported that Trump said he was considering taking control of the Strait of Hormuz, a remark that contributed to the sharp drop in oil prices.
Earlier in the session, the surge in crude oil had weighed on stocks. Oil briefly climbed above $100 per barrel for the first time since 2022 and approached $120 at its peak.
Prices had been supported by reports that major oil producers including Iraq, Kuwait and the United Arab Emirates were reducing output.
With the Strait of Hormuz effectively closed due to Iranian threats against oil tankers, these producers are reportedly facing limited storage capacity.
Technology stocks played a key role in the market’s turnaround. Semiconductor shares led the gains, with the Philadelphia Semiconductor Index jumping 3.9% after earlier falling as much as 2% to a two-month intraday low.
Computer hardware, networking and biotechnology stocks also rallied during the session, helping lift the Nasdaq.
Airline stocks also staged a strong rebound, pushing the NYSE Arca Airline Index up 1.8%. Earlier in the day, the index had dropped as much as 6.2%, reaching its lowest intraday level in more than three months.
Oil service and healthcare stocks also finished higher, while telecom stocks remained among the weaker performers.