Dow futures rise 0.7% and S&P 500 futures gain 0.3% as oil retreats

Key Facts

U.S. futures rose in Tuesday, November 10 trading, with Dow Jones Industrial Average futures up 0.7% and S&P 500 futures gaining 0.3%, according to The Associated Press. The move came after U.S. President Donald Trump said on Monday that the war in Iran was “effectively over militarily,” remarks the agency said eased fears of further escalation. A retreat in oil also supported stocks in the previous session, as crude prices fell after Trump’s remarks about the possibility of resuming strikes. Investors are now turning their attention to the U.S. consumer price report for October, due Tuesday morning. The inflation reading would add a fresh indicator to markets’ assessment of the path of prices and monetary policy.

The futures gains followed a strong rally on Wall Street on Monday, November 9, when the S&P 500 rose 2.3%, the Dow Jones gained 2.2% and the Nasdaq Composite advanced 2.7%, according to The Associated Press. The agency attributed the stock gains to a drop in Brent crude after Trump told CNN that resuming strikes on Iran was “highly unlikely” if the United States saw progress in negotiations. The moves reflect investors’ response to reduced risks of supply disruption, while developments in the conflict and talks remained relevant to oil and stock pricing. In early Tuesday trading, Brent fell 2.2% to $90.52 a barrel, while U.S. benchmark crude also declined 2.2% to $84.94. That followed Brent’s Monday settlement down $5.75, or 5.85%, at $92.57 a barrel, before it extended losses by more than $7 after the settlement, according to Reuters via Euronext.

The oil retreat extended a week in which Brent fell 16%, its biggest weekly drop since the start of the Covid-19 pandemic, according to Reuters via Euronext. But signs of easing did not eliminate risks around shipping lanes: Reuters reported that shipping traffic came under attack in or near the Strait of Hormuz, even as Trump said he was unlikely to order new attacks as long as talks were making progress. In Asia, major markets closed higher on Tuesday, with Japan’s Nikkei up 2.9%, South Korea’s Kospi up 4.4% and Taiwan’s Taiex up 2.5%, according to The Associated Press. The gains point to improved investor appetite during the Asian trading session, alongside falling oil prices and reduced fears of escalation. Statements by the parties on negotiations and the state of navigation remain factors for markets to monitor alongside U.S. economic data.

The October consumer price index report is expected to show annual inflation rising to 3.9%, from 3.7% in September, according to The Associated Press. The U.S. Bureau of Labor Statistics scheduled the report’s release for November 10 at 8:30 a.m. September data showed the index rising 0.6% month over month and 3.7% year over year, while the gasoline index rose 9.1% during the month and accounted for more than half of the monthly increase in the overall index, according to the bureau. That makes the October reading a focus, particularly given recent changes in energy prices. The Federal Reserve’s November 10 schedule also includes a speech by Governor Christopher Waller and a discussion with Vice Chair for Supervision Michelle Bowman, according to the central bank’s calendar. Those events fall on the day inflation data are released, putting prices and Fed officials’ remarks among the session’s key events.

In corporate news, SoftBank shares jumped 13.9% in Tuesday trading ahead of the company’s results, despite it posting a $7 billion loss for the three months ended in September, according to The Associated Press. The share move and the company’s results feature in a session where corporate news intersects with attention to oil prices and inflation. As for upcoming data, investors await the October report at the time set by the Bureau of Labor Statistics, with markets set to compare the actual reading with the annual forecast of 3.9% and September’s rate of 3.7%. Waller is also scheduled to speak and Bowman to take part in a discussion on Tuesday, according to the Federal Reserve calendar. These data and events are next on the session’s schedule.