US stock futures are indicating a flat start to Wednesday’s session, April 13, suggesting a pause in the rally after all the key averages closed the previous session with gains of over 1%, putting them just shy of record highs.
Futures for the three key indices—the Dow Jones Industrial Average, the S&P 500, and the Nasdaq—were trading largely unchanged from the previous close.
Market sentiment has improved on expectations that easing tensions in the Middle East, after more than a month of hostilities, will help moderate oil prices and inflation while supporting a recovery in economic growth.
The US and Iran are seeking a second round of talks in the coming days, even as tensions in the Strait of Hormuz deepen the global energy crisis ahead of next week’s expiry of a ceasefire.
US President Donald Trump said on Tuesday that talks with Iran could resume in Pakistan over the next two days, according to an interview with the New York Post. “You should stay there, really, because something could be happening over the next two days, and we’re more inclined to go there,” Trump was quoted as saying.
The first round of talks between the US and Iran, held over the weekend after a month-long conflict, collapsed, prompting Washington to impose a blockade on Iranian ports.
As hopes of de-escalation build, the key US averages extended their winning run in Tuesday’s trade, with the S&P 500 rising 1.2% to 6,987, recovering all of its war-driven losses. It is now just 0.2% below its record high of 7,002. Gains in big tech stocks have helped push the S&P 500 back to pre-war levels.
The Dow Jones Industrial Average closed 320 points, or 0.66% higher, at 48,508.61, while the Nasdaq 100 rose 1.95% to 23,656, marking its 10th straight day of gains, its longest winning streak since 2021. The tech-heavy index has rebounded 8.55% in April so far and is now just 1.2% away from its record high.
US stocks saw a sell-off through March, with the S&P 500 and Dow Jones slipping into correction territory amid fears of high inflation and fewer rate cuts by the US Federal Reserve. However, positive earnings, signs of easing tensions in West Asia, dropping crude oil prices, and dovish comments from the Federal Reserve have revived sentiment.
Among individual stocks, Bank of America shares gained over 1% in pre-market trade after the company posted better-than-expected first-quarter results, while Snap shares jumped 5% after the company announced layoff plans.
On the currency front, the dollar index, which measures the greenback against a basket of currencies including the yen and the euro, has moved closer to its late February levels, slipping a further 0.29% to 98.
Crude oil prices rebound
Crude oil prices have regained strength as shipping through the Strait of Hormuz remains constrained, outweighing expectations of renewed US-Iran talks aimed at ending the war in the Middle East.
The benchmark US crude jumped by $1.93 to $93.21 a barrel, while Brent crude, the international benchmark, rebounded $2.11 to $94.79 a barrel.
On Tuesday, the International Energy Agency (IEA) projected that global oil demand will decline this year for the first time since the 2020 pandemic, as the price surge caused by the Middle East conflict weighs on consumption.
(With inputs from Reuters)
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