Stock market today: Dow, S&P 500, Nasdaq futures rise on Iran peace prospects

4 hours ago 2

Updated Tue, May 26, 2026 astatine 6:21 AM CDT 1 min read

US banal futures roseate connected Monday greeting arsenic investors welcomed easing lipid prices and increasing optimism that tensions betwixt Washington and Tehran could cool successful the coming days.

Futures tied to the Dow Jones Industrial Average (YM=F) climbed 0.5%, portion S&P 500 futures (ES=F) added 0.7%. Nasdaq 100 futures (NQ=F) led gains, rising 1%. Regular trading was paused connected Monday for the Memorial Day holiday.

Investor sentiment improved aft President Trump said negotiations with Iran were “moving on well,” signaling that diplomatic efforts whitethorn inactive forestall further escalation successful the conflict. Trump besides cautioned that the US remained prepared to enactment militarily should talks collapse.

Stock futures pared gains but remained higher arsenic the US and Iran exchanged occurrence successful the Strait of Hormuz, with the US saying it conducted self-defense strikes successful confederate Iran, and the Islamic Revolutionary Guard Corps. firing astatine a US craft and drones.

Oil markets reacted swiftly. West Texas Intermediate (CL=F) crude futures concisely spiked and past tumbled astir 5%, extending the caller pullback successful vigor prices. Brent (BZ=F) crude besides fell implicit 4%. Lower crude prices besides helped substance past week’s rally. US lipid fell 8.4% implicit the period, its steepest play diminution since mid-April.

Still, elevated vigor costs person analyzable expectations for Federal Reserve complaint cuts. According to CME Group’s FedWatch tool, traders are present pricing successful an 8.5% accidental of a Fed complaint hike successful July, up sharply from conscionable 0.9% 1 period ago.

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Oil prices rebound but inactive gait for losses arsenic US and Iran clash

Oil prices pared immoderate of their deeper losses connected Tuesday greeting aft the US and Iran clashed adjacent the Strait of Hormuz but inactive kept up appearances of advancement connected a bid deal.

Bloomberg reports:

The strikes came hours aft US President Donald Trump reiterated that negotiations with Tehran to widen their ceasefire and reopen the strait were proceeding, and conscionable earlier Iran’s Supreme Leader Mojtaba Khamenei published a connection informing that the “nations and lands of the portion volition nary longer beryllium a shield for American bases.”
There’s “a batch of talking backmost and forth” astir “specific connection successful the archetypal document, truthful it’ll instrumentality a fewer days,” US Secretary of State Marco Rubio told reporters successful India connected Tuesday morning.
The US subject said it conducted self-defense strikes successful confederate Iran, targeting missile-launch sites and boats attempting to laic mines, portion the Islamic Revolutionary Guard Corps said it fired astatine an F-35 combatant pitchy and respective drones aft they entered Iranian airspace.
The IRGC claimed it changeable down an unmanned MQ-9 Reaper drone and forced the different craft to flee. Several Iranian unit were killed successful the attacks connected vessels adjacent Larak Island successful the Strait of Hormuz, Iran’s state-run Nour News reported, without providing further details. Israel’s subject said it wasn’t portion of the US operation.

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What to ticker connected Tuesday and successful the week ahead

Traders returned from the Memorial Day vacation with immoderate optimism arsenic the S&P 500 (^GSPC) ended past week supra the 7,500 mark.

This week, markets person immoderate semiconductor and retailer net to look guardant to, arsenic good arsenic the Conference Board's user assurance speechmaking connected Tuesday and the Fed's preferred ostentation gauge, the Personal Consumption Expenditures index, connected Thursday.

Here’s today’s economical information and net calendar:

Tuesday: ADP play employment change, week ended May 9 (42,250 previously); Chicago Fed nationalist enactment index, April (-0.2 previously); Philadelphia Fed non-manufacturing activity, May (-16.5 previously); FHFA lodging terms index, month-on-month, March (0.0% previously); Conference Board user confidence, May (92.5 expected, 92.8 previously); Conference Board contiguous concern (123.8 previously); Conference Board expectations, May (72.2 previously); Dallas Fed manufacturing activity, May (-2.3 previously)

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