U.S. stock futures jumped after President Donald Trump said he was suspending Iran attacks for two weeks just ahead of his 8 p.m. ET deadline.
Futures tied to the Dow Jones Industrial Average rose by 718 points, or 1.5%. S&P 500 futures added 1.6%, and Nasdaq 100 futures climbed 1.7%.
Oil prices also declined in extended trading. West Texas Intermediate crude futures slid about 9% to around $102 a barrel.
“I agree to suspend the bombing and attack of Iran for a period of two weeks,” Trump posted on Truth Social. “We received a 10 point proposal from Iran, and believe it is a workable basis on which to negotiate.”
Trump noted that the “double sided” ceasefire was contingent on Iran agreeing to an opening of the Strait of Hormuz.
During the regular session, the S&P 500 eked out a gain of 0.08% as traders bet that a ceasefire could be achieved. The Nasdaq Composite inched 0.10% higher on Tuesday, while the Dow lost 85.42 points.
Stocks came off their session lows in the final hour of Tuesday’s trading session after Pakistan’s Prime Minister Shehbaz Sharif asked Trump to extend by two weeks his deadline for striking Iran’s bridges and power plants. In a post on social media platform X, Sharif also requested Tehran open the Strait of Hormuz for two weeks “as a goodwill gesture.”
Trump had previously set a deadline for 8 p.m. ET Tuesday for Iran to reach a deal with the U.S. to reopen the key waterway. He threatened to attack the nation’s power plants and bridges, as well as wipe out its “whole civilization,” if such terms were not met.
While ramping Middle East tensions have weighed on stocks in recent weeks, investors such as Adam Crisafulli, founder and president at Vital Knowledge, believe that more upside may be ahead if a ceasefire is reached.
“There’s still a lot of anxiety out there in the marketplace about the war continuing and the fallout from the war. We’re already going to see a pretty substantial fallout, just in the last five weeks, even if things ended today,” he said on CNBC’s “Closing Bell: Overtime” on Tuesday afternoon.
“But I think that if you were to actually see that adopted — a two-week ceasefire, reopening of Hormuz, and then presumably more negotiations — I think you’d see a pretty powerful rally over the coming days,” he added.
Delta Air Lines is set to report earnings before Wednesday’s opening bell.
Levi Strauss stock jumps after first-quarter earnings beat
Shares of Levi Strauss jumped on Tuesday night after the denim maker posted a first-quarter earnings and revenue beat.
In its last quarter, Levi Strauss earned an adjusted 42 cents per share, higher than the 37 cents analysts polled by LSEG had expected. The company’s $1.74 billion revenue also beat the estimated $1.65 billion.
Shares were last trading 5% higher.
The company also raised its guidance. Levi Strauss now expects its full-year adjusted earnings to come in between $1.42 and $1.48 per share.
— Lisa Kailai Han and Gabrielle Fonrouge
