US stock futures witnessed a sharp jump on Monday after US President Donald Trump said Washington and Tehran had held “productive” talks over the past two days .
Dow Jones Industrial Average futures jumped 1,100 points, or 2.6%, while S&P 500 futures rose 2.7% and Nasdaq-100 futures gained 2.7%.
Trump also said that he was pausing any strikes on Iranian power plants and energy infrastructure, easing fears of a broader conflict in the Middle East.
5 things to know before Wall Street opens
1. Trump’s remarks offered relief after heightened concerns that a military escalation could disrupt oil supplies and rattle equities across global financial markets.
“I am pleased to report that the United States of America, and the country of Iran, have had, over the last two days, very good and productive conversations regarding a complete and total resolution of our hostilities in the Middle East,” Trump said in a Truth Social post.
“Based on the tenor and tone of these in-depth, detailed, and constructive conversations, which will continue throughout the week, I have instructed the Department of War to postpone any and all military strikes against Iranian power plants and energy infrastructure for a five-day period, subject to the success of the ongoing meetings and discussions.”
2. After the Trump remarks, oil prices witnessed a sharp decline as Brent crude plunged over 7% and came below the critical $100 a barrel mark.
The oil prices have been facing extreme volatility over the past few months, with Goldman Sachs also raising its 2026 oil forecasts, citing the Iran conflict and severe disruption through the Strait of Hormuz.
The bank now expects Brent to average $85 this year, up from $77, while WTI is seen averaging $79 versus an earlier $72 estimate.
3. Gold and silver tumbled sharply on Monday as investors continued to dump precious metals.
Spot gold fell 7.8% to $4,126.36, while gold futures slid nearly 10% to $4,119.10, their lowest level of 2026 so far.
The latest drop followed an almost 10% decline last week, the steepest fall as investors are weighing in higher intrest rates amid rising inflation.
4. US Treasury yields climbed sharply on Monday, with the benchmark 10-year yield rising more than 4 basis points to 4.435%.
The Treasuries are currently trading around their highest level since July 2025.
The development came as the investors continued to reprice expectations for Federal Reserve rate cuts after last week’s shift in sentiment.
Higher yields reflect growing concerns that inflation risks remain elevated.
5. The global markets came under heavy pressure on Monday amid escalating US-Iran tensions and fresh threats around the Strait of Hormuz.
In Asia, Japan’s Nikkei 225 fell nearly 5%, the Topix lost 4.4%, South Korea’s Kospi dropped more than 6%, and the Kosdaq slid nearly 5%.
In Europe, the mood was similarly weak, with the FTSE 100 seen opening 1% lower, Germany’s DAX down 1.5%, France’s CAC 40 off 1.4%, and Italy’s FTSE MIB lower by 1.5%.
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