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Stock futures shot higher in a sudden move after President Donald Trump said the U.S. and Iran have held productive talks over the last two days and he was halting any strikes on Iranian power plants and energy infrastructure.
Futures for the 30-stock index popped 1,041 points, or 2.3%, to 46,934.
Futures for the S&P 500 index hiked 140 points, or 2.1%, to 6,699.
Futures for the NASDAQ zoomed 495.50 points, or 2.1%. to 24,597.
“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,” wrote Trump in a Truth Social post.
Trump’s announcement came as the Iran war entered its fifth week, with tensions escalating over the weekend. Trump had threatened an attack on Iranian power plants if the Strait of Hormuz — a key shipping route for oil and other energy products — isn’t reopened.
Iran responded in turn said it would target U.S. infrastructure, including energy and desalination facilities in the Gulf, if the U.S. carried out its threat.
It was a broad rebound in early trading with cyclical shares like banks and industrials surging as well as tech shares.
JPMorgan Chase and Morgan Stanley were each 2% higher in premarket trading. Caterpillar and Deere added 2% apiece. Nvidia and Apple were also both 2% higher.
Moreover, word came down that Berkshire Hathaway will invest $1.8 billion in Tokio Marine Holdings, extending Warren Buffett’s push into Japan and strengthening ties in the global insurance market.
In Japan, the Nikkei 225 returned from a long weekend to drop 3.5%, while in Hong Kong, the Hang Seng also reversed 3.5%.
Oil prices tumbled $8.06 to $90.17 U.S. a barrel.
Gold prices plummeted $168.10 to $4,406.80 U.S an ounce.
