Wall Street futures surged on Monday after U.S. President Donald Trump announced a delay in planned military strikes on Iran. The move helped calm markets that had been shaken by rising geopolitical tensions in recent days.
Futures for major indexes rose by more than 2%, reversing earlier losses. Investors responded quickly to signs of easing conflict risk, pushing markets into positive territory after a period of volatility.
The rebound followed Trump’s statement that he would postpone strikes on Iranian power plants and energy infrastructure. He cited “productive conversations” with Tehran as the reason behind the decision.
Global markets reacted strongly to the announcement. European stocks, including the STOXX 600, moved higher, while precious metals also gained. At the same time, oil prices declined, reflecting improved market sentiment and reduced fears of supply disruptions.
Earlier, markets had come under pressure after Iran warned it could target Israel’s power infrastructure and facilities supporting U.S. bases in the Gulf. The threat raised concerns about a broader regional escalation.
Analysts said the delay provided temporary relief but warned that uncertainty remains. Chris Beauchamp of IG Markets noted that the situation is still evolving and could shift again depending on future developments.
By 07:17 a.m. ET, Dow E-minis had climbed 1,140 points, while S&P 500 and Nasdaq 100 futures also posted strong gains. The rally marked a sharp turnaround after several sessions of losses.
Market volatility also eased. The CBOE Volatility Index, often referred to as Wall Street’s “fear gauge,” fell after reaching a two-week high earlier. This decline signaled growing investor confidence in the short term.
Despite the rebound, major U.S. indexes had already recorded their fourth consecutive week of declines. The Nasdaq, in particular, experienced its steepest weekly drop since early February.
Smaller companies also saw gains, with futures tracking the Russell 2000 index rising significantly. The index had previously entered correction territory, reflecting pressure from higher interest rates and economic uncertainty.
Looking ahead, investors will continue to monitor geopolitical developments closely. Any further escalation or diplomatic progress could quickly influence market direction.
For now, the delay in military action has offered a moment of stability. However, markets remain sensitive to political signals, and volatility could return if tensions rise again.
