Dow Jones, S&P 500 and Nasdaq futures are currently pointing to a roughly flat open on Monday, with stocks likely to show a lack of direction following last week’s rally.
Traders may be reluctant to make significant moves amid uncertainty about the U.S. war with Iran following President Donald Trump’s latest threats.
In an expletive-laden Truth Social post Easter Sunday morning, Trump once again threatened to attack Iran’s power plants and bridges unless the Strait of Hormuz is reopened by 8 pm ET on Tuesday.
Crude oil prices initially extended last Thursday’s spike in reaction to Trump’s comments but have given back ground since then amid reports of indirect talks between the U.S. and Iran about a potential ceasefire.
A report from Azios citing four U.S., Israeli and regional sources said the U.S., Iran and a group of regional mediators are discussing the terms for a potential 45-day ceasefire that could lead to a permanent end to the war.
Reuters also reported that the U.S. and Iran are weighing ?the framework of a plan to end the five-week-old conflict but noted Tehran has pushed back against pressure to swiftly reopen the Strait of Hormuz.
A source aware of the proposals told Reuters the Pakistani-brokered plan calls for an immediate ceasefire, followed by negotiations on a broader peace settlement to be concluded within 15 to 20 days.
However, a senior Iranian official told Reuters that Iran won’t reopen the Strait of Hormuz as part of a temporary ceasefire, nor would it accept deadlines or pressure to reach a deal. ?
Stocks recovered from a sharp pullback early in the session on Thursday but showed a lack of direction over the remainder of the trading day. The major averages spent much of the day lingering near the unchanged line.
The major averages eventually ended the day narrowly mixed. While the Dow edged down 61.07 points or 0.1 percent to 46,504.67, the S&P 500 crept up 7.37 points or 0.1 percent to 6,582.69 and the Nasdaq rose 38.23 points or 0.2 percent to 21,879.18.
Early in the session, the Nasdaq tumbled by as much as 2.2 percent, while the S&P 500 and the Dow slumped by as much as 1.5 percent and 1.4 percent, respectively.
Reflecting the rally seen over the two previous sessions, the major averages posted strong gains for the holiday-shortened week. The Nasdaq spiked by 4.4 percent, the S&P 500 surged by 3.4 percent and the Dow jumped by 3 percent.
The early weakness on Wall Street came amid renewed concerns about an escalation of the conflict in the Middle East following President Donald Trump’s primetime address Wednesday night.
While Trump’s speech largely echoed his recent comments and Truth Social posts, traders seemed to respond negatively to the tone of his remarks.
The president reiterated his claim that the war will be over “very shortly” but also said the U.S. is going to hit Iran “extremely hard over the next two to three weeks,” bringing the country “back to the stone ages where they belong.”
Trump also once again called on other countries to “build up some delayed courage” and take control of the vital Strait of Hormuz, claiming, “The hard part is done.”
After moving sharply lower over the past two days amid optimism an end to the conflict, crude oil prices skyrocketed in reaction to Trump’s speech, with U.S. crude oil futures spiking by more than 11 percent.
However, stocks bounced well off their worst levels after a report from Iranian state news agency IRNA said Iran and Oman are drafting a protocol to “monitor transit” through the Strait of Hormuz.
Kazem Gharibabadi, Iran’s deputy minister of legal and international affairs, said the requirements are meant to “facilitate and ensure safe passage and provide better services to ships that pass through this route,” according to a translation of IRNA’s report.
Networking stocks showed a substantial move to the upside on the day, driving the NYSE Arca Networking Index up by 3.9 percent to a record closing high.
Considerable strength was also visible among computer hardware stocks, as reflected by the 2.5 percent surge by the NYSE Arca Computer Hardware Index.
Telecom stocks also showed a significant move to the upside, with the NYSE Arca north American Telecom Index jumping by 2.4 percent.
Oil producer, commercial real estate and natural gas stocks also saw notable strength, while airline stocks moved sharply lower, dragging the NYSE Arca Airline Index down by 2 percent.