A trader works on the floor of the New York Stock Exchange (NYSE) before the closing bell in New York, on April 24, 2026.
Charly Triballeau | AFP | Getty Images
Stock futures fell in overnight trading Sunday as stalled Iran peace talks and a fresh escalation in the Strait of Hormuz pushed oil prices higher, keeping geopolitical tensions front and center heading into a pivotal week.
Futures tied to the Dow Jones Industrial Average fell 0.2%, or 130 points. S&P 500 futures declined 0.3%, while Nasdaq 100 futures slipped 0.3%.
President Donald Trump on Saturday scrapped plans to send U.S. special envoy Steve Witkoff and Jared Kushner to Pakistan for ceasefire talks related to Iran, noting the negotiations could happen by phone.
“Too much time wasted on traveling, too much work!” the president wrote in a post on Truth Social. “Nobody knows who is in charge, including them. Also, we have all the cards; they have none! If they want to talk, all they have to do is call!!!”
Iran’s Foreign Ministry spokesman Esmaeil Baqaei said no meeting between Tehran and Washington is currently planned.
Tensions escalated near the Strait of Hormuz after Iran’s Islamic Revolutionary Guard Corps boarded two container ships near the vital shipping lane, a key artery for global crude flows. West Texas Intermediate futures rose about 2% to above $96 a barrel, while international benchmark Brent oil futures rose about 2% to top $107 per barrel.
“While this is a modest negative, we continue to think the conflict remains on a path of de-escalation,” said Adam Crisafulli of Vital Knowledge in a note.
On the corporate front, five of the “Magnificent Seven” companies are set to report results in the final week of April, raising the stakes for a market already priced for strong growth.
Attention will also turn to the Federal Reserve’s policy decision on Wednesday, which could mark Jerome Powell’s final meeting as chair before Kevin Warsh is expected to take over in May. The Department of Justice decided to drop its criminal probe into Powell on Friday, causing Sen. Thom Tillis to end his block of Warsh’s confirmation.
The S&P 500 and Nasdaq Composite ended last week at fresh all-time highs, extending a powerful rally despite tensions in the Middle East and doubts about record artificial intelligence spending. April is shaping up to be a strong rebound month for equities. The S&P 500 is up more than 9%, while the Nasdaq has surged over 15%. The blue-chip Dow has gained more than 6% month to date.
