After making a huge return in response to President Donald Trump’s decision to halt assaults on Iran for two weeks, S&P futures fell early on Thursday. Both Nasdaq 100 and S&P 500 futures saw a 0.4% decline. The Dow Jones Industrial Average-linked futures dropped 194 points, or around 0.4%. The Nasdaq Composite surged 2.8% and the S&P 500 increased 2.51% during Wednesday’s regular session. The Dow had its best day since April 2025, when Trump changed his stance on some of his ambitious early tariffs, rising more than 1,300 points, or 2.85%.
Trump consented to stop attacking Iran on Tuesday night. The vital Strait of Hormuz has been closed as a result of the five-week-long fighting in the Middle East. In a Truth Social post, Trump stated, “I agree to suspend the bombing and attack of Iran for a period of two weeks. We think Iran’s 10-point proposal is a feasible starting point for negotiations.” However, Iran’s consent to reopen the strait was a requirement for the “double sided” ceasefire. According to a statement from Iran’s Foreign Minister, Tehran pledged to reopen the canal for the following two weeks provided that all attacks are stopped. According to sources, Israel has also accepted the cease-fire.
However, Mohammed Bagher Ghalibaf, the speaker of Iran’s parliament, said later on Wednesday that the United States had already broken the ceasefire. According to him, the transgressions include the denial of the Islamic Republic’s right to enrich uranium, a drone entering Iranian airspace, and Israel’s ongoing attacks on Lebanon. President Donald Trump stated on Wednesday that U.S. military personnel will continue to be stationed in and around Iran until Tehran completely complies with the “real agreement,” threatening that any violation will result in an unprecedented military response. Eric Johnston said that despite the market’s rally on Wednesday, there are still possible risks associated with Middle East negotiations.
He stated, “I do think, from a short-term perspective, that there are still risks that are still there,” he said. “You have a lot of players involved and, so far, Hormuz is not open. So there are still risks and so I think for the coming couple weeks, we’ll see how this plays out. But yes, broadly we think this is a buying opportunity.” However, in general, we believe that this is a purchasing opportunity. On Thursday morning, traders should expect a few catalysts. The Federal Reserve’s favored indicator of inflation is the personal consumption expenditure price index, which is measured at 8:30 a.m. Jobless claims are also due on a weekly basis.