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Stock market today: Dow, S&P 500, Nasdaq futures rise on Iran peace prospects
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Stock market today: Dow, S&P 500, Nasdaq futures rise on Iran peace prospects
Rian Howlett and Grace O'Donnell Tue, May 26, 2026 at 7:21 AM EDT 1 min read **
- ^DJI
- ^GSPC
- ^IXIC
- CL=F
- ^NDX
US stock futures rose on Monday morning as investors welcomed easing oil prices and growing optimism that tensions between Washington and Tehran could cool in the coming days.
Futures tied to the Dow Jones Industrial Average (YM=F) climbed 0.5%, while S&P 500 futures (ES=F) added 0.7%. Nasdaq 100 futures (NQ=F) led gains, rising 1%. Regular trading was paused on Monday for the Memorial Day holiday.
Investor sentiment improved after President Trump said negotiations with Iran were “moving along well,” signaling that diplomatic efforts may still prevent further escalation in the conflict. Trump also cautioned that the US remained prepared to act militarily should talks collapse.
Stock futures pared gains but remained higher as the US and Iran exchanged fire in the Strait of Hormuz, with the US saying it conducted self-defense strikes in southern Iran, and the Islamic Revolutionary Guard Corps. firing at a US aircraft and drones.
Oil markets reacted swiftly. West Texas Intermediate (CL=F) crude futures briefly spiked and then tumbled nearly 5%, extending the recent pullback in energy prices. Brent (BZ=F) crude also fell over 4%. Lower crude prices also helped fuel last week’s rally. US oil fell 8.4% over the period, its steepest weekly decline since mid-April.
Still, elevated energy costs have complicated expectations for Federal Reserve rate cuts. According to CME Group’s FedWatch tool, traders are now pricing in an 8.5% chance of a Fed rate hike in July, up sharply from just 0.9% one month ago.
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- 9 mins ago Grace O'Donnell
What to watch on Tuesday and in the week ahead
Traders returned from the Memorial Day holiday with some optimism as the S&P 500 (^GSPC) ended last week above the 7,500 mark.
This week, markets have some semiconductor and retailer earnings to look forward to, as well as the Conference Board's consumer confidence reading on Tuesday and the Fed's preferred inflation gauge, the Personal Consumption Expenditures index, on Thursday.
Here’s today’s economic data and earnings calendar:
Tuesday: **ADP weekly employment change, week ended May 9 (42,250 previously); Chicago Fed national activity index, April (-0.2 previously); Philadelphia Fed non-manufacturing activity, May (-16.5 previously); FHFA housing price index, month-on-month, March (0.0% previously); Conference Board consumer confidence, May (92.5 expected, 92.8 previously); Conference Board present situation (123.8 previously); Conference Board expectations, May (72.2 previously); Dallas Fed manufacturing activity, May (-2.3 previously)
**Earnings calendar: **AutoZone (AZO), Elbit Systems (ESLT), Zscaler (ZS), Pony AI (PONY)
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