U.S. stock futures rose and oil prices tumbled after President Donald Trump called off a planned strike on Iran and said talks with Tehran would resume. Treasury yields eased alongside the relief rally, though Vital Knowledge founder Adam Crisafulli said the conflict likely has further to go before any resolution. Investors now turn to a week of labor-market data, capped by Friday's July jobs report.
Dow Jones Industrial Average futures jumped 557 points, or nearly 1.1%, early Monday after President Donald Trump called off a planned strike on Iran. S&P 500 futures advanced 0.6% while Nasdaq-100 futures ticked up 0.1% in the same session. Oil prices tumbled in response, with Brent crude sliding 5.2% to $83.39 a barrel and West Texas Intermediate dropping 6.2% to $79.45.
Yields ease as Iran tensions cool
Treasury yields also fell as inflation worries dimmed slightly. The benchmark 10-year yield slid 6 basis points to 4.68%.
Trump said Sunday he had canceled the planned attack on Iran and that talks between the two nations would resume Monday. That reversal followed Friday reports that he was preparing a new wave of strikes as hopes for a negotiated settlement diminished and energy prices surged.
Vital Knowledge founder Adam Crisafulli wrote that investors are keeping their enthusiasm in check because "we've been here before" and that the conflict likely has further to go before reaching a resolution.
Oil's drop tied to Hormuz hopes
The prospect of reopening the Strait of Hormuz drove the pullback in crude prices, according to the Wall Street Journal.
Jobs data looms after a volatile July
Monday marks the first trading day of August, with the major averages looking to stabilize after a volatile July. This week brings a full slate of labor-market data, culminating Friday in the closely watched jobs report. Economists surveyed by FactSet expect payrolls to rise by 87,500, up from 57,000 in June.
The unemployment rate is expected to edge up to 4.3% from 4.2%.
Sources: CNBC, Quartz via Yahoo Finance
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