U.S. Stock Futures Surge as Trump Postpones Iran Strikes, Ceasefire Hopes Rise

U.S. stock index futures climbed sharply on Tuesday evening as optimism grew over a potential end to the ongoing Middle East conflict. The rally followed President Donald Trump's announcement that planned military strikes against Iran would be postponed by two weeks to allow ceasefire negotiations to move forward.

S&P 500 Futures jumped 2.2% to 6,804.75, Nasdaq 100 Futures surged 2.7% to 25,029.50, and Dow Jones Futures gained 2% to 47,760.0 by late Tuesday. Oil prices simultaneously tumbled more than 12% on the de-escalation news, reflecting a major shift in market sentiment.

Trump's decision to delay the strikes came just hours before a self-imposed deadline for severe action against Tehran. He credited Pakistani diplomatic efforts for helping broker the pause. Iran's Foreign Minister Seyed Aragchi responded positively, indicating that Tehran would halt its defensive operations if attacks on the country stopped, and confirmed that safe navigation through the Strait of Hormuz would be restored — a key condition Trump had outlined.

Earlier in the regular trading session, Wall Street closed mostly flat. The S&P 500 edged up 0.1% to 6,616.84, the Nasdaq Composite also rose 0.1% to 22,017.85, while the Dow Jones dipped 0.2% to 46,584.46. Semiconductor stocks stood out as a bright spot, with the SOX index gaining over 1%. Broadcom led the charge after announcing an expanded AI chip partnership with Google and Anthropic. Nvidia and Intel also posted modest to strong gains as bargain hunters returned to the sector following steep March losses.

Markets had been volatile throughout April amid conflicting signals about the Iran conflict, now entering its sixth week. Investors are now closely watching whether a formal ceasefire agreement can be reached in the days ahead.