U.S. stock futures moved higher early Monday as oil prices fell. The drop in oil came after President Donald Trump said the U.S. and Iran had productive talks and decided to pause planned strikes on Iran’s energy infrastructure. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) Index were up 1.79%, 1.87%, and 1.98%, respectively, at 7:40 a.m. EDT on March 23.
Claim 55% Off TipRanks
Trade QQQ with leverageAt the time of writing, Brent crude (CM:BZ) was down 8.37% to $102.93 a barrel, while West Texas Intermediate (WTI) crude (CM:CL) gained 8.51% to $89.87 per barrel.
Trump said the two countries had “very good and productive” talks over the past two days. He added that he has ordered a five-day delay on any military strikes targeting Iran’s power plants and energy facilities.
This follows Trump’s earlier 48-hour deadline for Iran to reopen the Strait of Hormuz. However, it is still unclear when the key shipping route will reopen.
Meanwhile, February’s wholesale inflation came in higher-than-expected, showing price pressure was already a concern even before tensions rose in the Middle East. Since producer prices often pass through to consumers faster than oil spikes, the next CPI and PCE data may look weak.
This week, more data could bring clarity. In particular, the consumer sentiment index will give a read on demand and overall economic health.