US futures edged lower early Tuesday, following a notable advance in the previous session fueled by rising expectations of a de-escalation in tensions between the United States and Iran. Market participants weighed ongoing uncertainty in the Middle East after a volatile period for both stocks and commodity prices.
At 4:37 p.m. (Bangkok Time), S&P 500 futures had retreated by 0.29%, while contracts linked to the Nasdaq 100 slipped by 0.25%. Dow Jones Industrial Average futures also marked a 0.34% decline.
Energy markets saw heightened volatility in response to the developments. Oil prices initially dropped on reports that hostilities might subside, but soon reversed course as confrontations involving Iranian and US-Israeli forces carried on. On Tuesday, West Texas Intermediate crude advanced 3.56% to $91.27 a barrel, and Brent crude gained 2.69% to $98.50.
During Monday’s regular trading hours, optimism over geopolitical negotiations drove Wall Street’s major indices to multi-month highs. The S&P 500 recorded a 1.15% increase, while the Nasdaq and Dow both rose 1.38%, respectively. At its strongest level, the Dow was up by more than 1,100 points during the session. Monday’s rally marked the best one-day performance for all three major indexes since early February.
The market reaction followed comments from President Donald Trump, who announced via Truth Social that U.S.-Iran discussions had been “very good and productive” and were aimed at a comprehensive resolution to regional hostilities. Iranian official media, however, denied that any direct dialogues had occurred.
The positive equity response came after a tense weekend in which President Trump had warned of possible military actions against Iranian energy facilities unless the Strait of Hormuz reopened. Tehran’s subsequent threats to U.S. interests contributed to market volatility and concerns about further conflict escalation.
Looking ahead, investors are expected to monitor upcoming US manufacturing data scheduled for release Tuesday morning. Additionally, market attention will be on the conclusion of the current earnings season, with GameStop slated to report quarterly results after the close.
