Futures tied to major U.S. indices were little changed, as investors monitored the prospect of renewed peace discussions between the United States and Iran. Hopes of easing tensions have helped keep oil prices below the $100-per-barrel level, even as Washington maintains a blockade on Iranian ports. At the same time, the earnings season continues to gather pace, with major U.S. banks pointing to a resilient economy despite geopolitical pressures.
Futures hold steady
U.S. equity futures were broadly flat on Wednesday, with markets balancing geopolitical developments against a heavy flow of corporate results.
By 03:28 ET, futures on the Dow Jones, S&P 500, and Nasdaq 100 were all trading close to unchanged.
Despite volatility linked to the Iran conflict and disruptions around the Strait of Hormuz—a key global shipping route—U.S. equities have remained on an upward trajectory. The S&P 500 ended Tuesday near record highs, while the Nasdaq Composite has surged roughly 14% over the past 10 sessions, marking its longest winning streak since 2021.
The early stages of the quarterly earnings season have also supported sentiment. Major U.S. lenders have highlighted continued strength in consumer spending and borrowing, suggesting the economy remains robust despite risks tied to potential energy shocks.
“It’s still way too early in the [calendar year first quarter] earnings season to draw any firm conclusions, but so far, we’ve been impressed by the resiliency of Corporate America,” analysts at Vital Knowledge said in a note.
Trump points to renewed Iran talks
U.S. President Donald Trump indicated that negotiations between Washington and Tehran could resume within the next two days, following initial discussions held in Pakistan last weekend.
Vice President JD Vance, who led the U.S. delegation in Islamabad, also expressed optimism regarding the progress of talks.
However, the U.S. continues to enforce a blockade on Iranian ports, with officials stating that maritime trade to and from the country has effectively been halted. The restrictions were introduced earlier this week after talks in Pakistan failed to deliver an immediate ceasefire, though expectations for a rapid agreement had already been limited.
While the blockade has heightened concerns about oil supply disruptions in the Persian Gulf, recent reports suggest some improvement. According to the Wall Street Journal, more than 20 commercial vessels have recently passed through the Strait of Hormuz, indicating partial easing in transit conditions.
Oil prices remain below $100
With hopes of a potential de-escalation, crude prices stayed below the $100 threshold.
At 03:16 ET, Brent crude futures were up 0.3% at $95.10 per barrel, while U.S. West Texas Intermediate crude edged down 0.2% to $91.12.
The softer oil environment has contributed to a slight weakening in the U.S. dollar, which had previously strengthened as a safe-haven asset during the conflict. A dollar index tracking the currency against a basket of peers is now only marginally above levels seen before the war began in late February.
Even so, oil prices remain elevated compared with pre-conflict levels, reflecting ongoing supply concerns linked to disruptions at the Strait of Hormuz, through which roughly 20% of global oil flows.
Additional supply risks may emerge after the U.S. opted not to extend a 30-day waiver on sanctions covering Iranian oil shipments at sea, due to expire this week. Reuters also reported that a similar waiver for Russian oil was not renewed after expiring last weekend.
Focus shifts to bank earnings
Attention is now turning to further results from major U.S. lenders, including Bank of America (NYSE:BAC) and Morgan Stanley (NYSE:MS), both scheduled to report later in the day.
Market volatility—driven by geopolitical tensions and rapid developments in artificial intelligence—has supported trading revenues at large banks. Institutions such as JPMorgan Chase (NYSE:JPM) tend to benefit from heightened market activity, as clients adjust portfolios and increase hedging.
JPMorgan reported a 20% increase in markets revenue for the three months ending March 31, reflecting similar trends seen at competitors like Goldman Sachs (NYSE:GS).
Despite market turbulence, banking executives have also pointed to a strong dealmaking environment, with expectations that 2026 could see a wave of major transactions, particularly involving AI and space-related companies.
European earnings in focus
In Europe, corporate earnings have also influenced market sentiment.
Hermès (EU:RMS) reported slower quarterly sales growth due to demand pressures linked to the Middle East conflict. Meanwhile, Kering (EU:KER) also posted weaker sales, although it noted some improvement in demand trends. Combined with recent results from Dior-owner LVMH, these updates suggest the luxury sector may be facing increasing headwinds.
Shares of both Hermès and Kering declined sharply on Wednesday.
On a more positive note, ASML (EU:ASML) provided support to European markets. The company raised its full-year sales outlook, benefiting from strong demand driven by the AI boom. Major chipmakers such as TSMC and Intel continue to invest heavily in ASML’s technology as they expand their AI capabilities.
ASML shares rose by more than 1%.