US stock futures experienced a decline on Wednesday evening following the modest gains made by equities as they entered the second quarter. Investors are currently evaluating a national address made by President Trump, which focused on the ongoing war in Iran.
Futures associated with the S&P 500 dropped by 0.7%, while those linked to the Nasdaq 100 saw a 0.9% decrease. Additionally, Dow Jones Industrial Average futures fell by 0.6%.
The speech from President Trump, scheduled for 9 pm ET, provided an “important update on Iran.” The ongoing conflict involving the US and Israel against Iran has caused significant disturbances in global markets over recent weeks. Market observers were particularly attentive to any indicators of a potential ceasefire and the status of the Strait of Hormuz, essential for maintaining stability in energy markets.
Since the onset of the war in late February, Brent crude oil prices have surged by approximately 40%. However, a recent decrease in oil prices has improved market sentiment, with US benchmark West Texas Intermediate crude settling down by 1.2% to around $100 per barrel and Brent crude dropping by 2.7% to just over $101.
In a recent social media post, President Trump mentioned that Iran’s president had reached out for a ceasefire, although any agreement would depend upon the reopening of the Strait of Hormuz. He further asserted in his address that US forces would “hit Iran hard” and suggested withdrawing from Iran within a timeframe of two to three weeks.
A final trading session ahead of the Good Friday closure is set to occur on Thursday, where investors will closely examine the weekly jobless claims data. Additionally, the highly anticipated March jobs report is due for release on Friday.
As the conflict in Iran continues into its fifth week, energy prices remain elevated, with only slight retreats from the multi-year highs. Economists at Bank of America predict that the persistence of the war will result in slower economic growth and increased inflation, forecasting oil prices to remain around $100 per barrel throughout 2026.
Investors are urged to stay updated as developments unfold, given the potential implications for both the markets and the broader economy.
