U.S. stock futures indicated a weaker open on Tuesday, suggesting equities may retreat after posting gains in recent trading sessions.
Investor caution comes as markets closely monitor developments in the Middle East ahead of an 8 p.m. ET deadline set by U.S. President Donald Trump for Iran to reach an agreement.
Trump has warned that the United States could target Iranian infrastructure—including power plants and bridges—if Tehran fails to secure a deal and reopen the Strait of Hormuz, a key global energy shipping route.
Escalating his rhetoric, Trump wrote in a recent Truth Social post, “A whole civilization will die tonight, never to be brought back again. I don’t want that to happen, but it probably will.”
The president also claimed that a “different, smarter, and less radicalized” leadership is now in charge of Iran, suggesting that a dramatic shift could occur.
“WHO KNOWS?” Trump posted, adding further uncertainty to market sentiment. “We will find out tonight, one of the most important moments in the long and complex history of the World.”
On Monday, stocks moved unevenly throughout the session but maintained a generally positive tone, ultimately finishing mostly higher. The gains extended the strong rally seen last week.
By the close, the main indices were near their session highs. The Nasdaq rose 117.16 points, or 0.5%, to 21,996.34. The S&P 500 gained 29.14 points, or 0.4%, to 6,611.83, while the Dow Jones Industrial Average added 165.21 points, or 0.4%, ending at 46,669.88.
Although last week’s upward momentum carried into the new week, investors remained cautious amid uncertainty surrounding the potential escalation of the U.S. conflict with Iran following Trump’s recent warnings.
In a strongly worded Truth Social message posted on Easter Sunday morning, Trump reiterated his threat to strike Iran’s power plants and bridges if the Strait of Hormuz is not reopened by the Tuesday evening deadline.
Oil prices initially extended the sharp rise seen last Thursday in response to Trump’s remarks but have since eased amid reports of indirect negotiations between Washington and Tehran aimed at achieving a ceasefire.
Axios reported, citing four U.S., Israeli and regional sources, that the United States, Iran and regional intermediaries are discussing terms for a potential 45-day ceasefire that could pave the way for a lasting resolution to the conflict.
Reuters also reported that Washington and Tehran are evaluating a possible framework to end the five-week conflict. However, the news agency noted that Iran has resisted calls to quickly reopen the Strait of Hormuz.
According to a source familiar with the discussions, the proposal—brokered by Pakistan—would involve an immediate ceasefire followed by negotiations on a broader peace agreement to be finalized within 15 to 20 days.
A senior Iranian official, however, told Reuters that Tehran would not agree to reopen the Strait of Hormuz as part of a temporary ceasefire and would not accept external deadlines or pressure in negotiations.
Meanwhile, a White House official told CNBC that Trump has “not signed off” on the proposed 45-day ceasefire, though the president provided limited detail about the talks during a press briefing.
Despite the overall market gains on Monday, movements across most sectors were relatively modest.
Retail stocks stood out, with the Dow Jones U.S. Retail Index climbing 1.1%.
Transportation, semiconductor and brokerage shares also posted gains during the session, while pharmaceutical stocks ended the day lower.