Stock futures dipped Sunday night as President Donald Trump rejected Iran’s latest proposal to end the war, causing oil prices to surge. Futures for the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 all saw slight declines.
Despite the geopolitical tension, some analysts believe the U.S. economy remains resilient. Investors will be closely monitoring upcoming inflation data and corporate earnings reports from companies like Under Armour and Cisco for further market direction.
Stock futures experienced a slight downturn Sunday night, following a robust week for Wall Street. The decline comes as oil prices climbed sharply after President Donald Trump decisively rejected Iran's latest proposal aimed at ending the ongoing conflict. Futures tied to the Dow Jones Industrial Average fell 143 points, or 0.3%. Similarly, S&P 500 futures and Nasdaq 100 futures each saw a 0.3% decrease.
Traders at the New York Stock Exchange on May 7, 2026. (NYSE)
These movements occurred after a strong performance last week, where the S&P 500 and Nasdaq Composite rallied over 2% and 4%, respectively. Both indexes marked their sixth consecutive winning week, a significant achievement not seen since 2024. The Dow also posted gains, rising 0.2% for the week and securing its fifth win in the last six weeks.
The market rally extended into Friday, buoyed by the U.S. nonfarm payrolls report. The report indicated an increase of 115,000 jobs in April, exceeding the 55,000 expected by economists surveyed by Dow Jones. Both the S&P 500 and Nasdaq concluded Friday's trading session at record highs.
The diplomatic tension escalated when Iran presented a new proposal to U.S. negotiators, focused on de-escalating the protracted conflict. According to Iran's semi-official Tasnim news agency, the counteroffer emphasized the necessity of ending the war on all fronts and lifting sanctions against Tehran. However, President Trump reacted swiftly on Truth Social, stating he "did not like" Iran's response, labeling it "TOTALLY UNACCEPTABLE!" This rejection led to an immediate climb in oil futures during overnight trading.
Despite the geopolitical uncertainty, some market analysts remain optimistic about the resilience of U.S. markets. Rick Rieder, chief investment officer of global fixed income at BlackRock, commented, "The economy may slow somewhat from its prior path, due to the Iran war and subsequent oil price shock." However, he added, "there are many much larger structural components that should keep the aggregate economy in much better shape than many people expect."
Market participants will closely watch key economic indicators this week, including the April consumer and producer price indexes, which could provide insights into the war's impact on inflation. Additionally, investors will be anticipating earnings reports from major companies such as Under Armour and Cisco.
Trump Calls Iran Proposal 'TOTALLY UNACCEPTABLE'
President Trump officially rejected Iran's counterproposal regarding the ongoing conflict. In a Truth Social post, he declared, "I have just read the response from Iran's so-called 'Representatives.' I don't like it — TOTALLY UNACCEPTABLE!" This firm stance fueled a rise in oil prices.
Stock futures edged down shortly after 6 p.m. ET, with Dow futures losing 0.3%, and S&P 500 and Nasdaq 100 futures slipping 0.2%.
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