Traders work on the floor of the New York Stock Exchange during morning trading on April 17, 2026 in New York City.
Michael M. Santiago | Getty Images
Stock futures soared Monday night as oil prices fell and hopes grew that a resolution to the U.S.-Iran war was within reach.
Dow Jones Industrial Average Futures It received 441 points (0.9%). S&P500 futures rose 0.9%, Nasdaq 100 futures It advanced by 1.2%. US stock markets were closed on Monday for a public holiday.
President Donald Trump said Monday that negotiations with Iran to end the war are “progressing well.” However, he warned that the United States could launch an offensive if negotiations break down.
Oil prices plummeted following President Trump’s remarks. West Texas Intermediate futures fell about 6%.
The S&P 500 rose 0.9% last week, snapping its longest weekly winning streak since late 2023. The Dow rose 2.1%, posting its third weekly gain in four weeks. The Nasdaq rose 0.5% last week, marking its seventh rise in eight weeks.
“There is no question that fundamentals are at least partially responsible for market rallies,” wrote Adam Parker, founder of Trivariate Research. “Earnings are expected to grow 23% this year and 16% next year, and there is a credible argument that the price-to-earnings ratio has contracted slightly despite higher earnings estimates and solid revenue growth.”
A drop in oil prices also boosted stock prices last week. U.S. crude oil fell 8.4%, its worst week since April 17.
But with oil prices still well above their levels at the start of the year and price pressures remaining high, investors’ expectations for the Federal Reserve’s accommodative policy have waned. In fact, traders are pricing in an 8.5% chance of a rate hike in July, up from 0.9% a month earlier, according to CME Group’s FedWatch tool.
