US pre-open: Futures higher as Trump says US could leave Iran within weeks

(Sharecast News) - Wall Street futures were in the green ahead of the bell on Wednesday as oil prices declined amid optimism that the US/Israel-Iran conflict may soon draw to a close. As of 1300 BST, Dow Jones futures were up 0.71%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.74% and 0.98% firmer, respectively.

The Dow closed 1,125.37 points higher on Tuesday, extending gains recorded in the previous session.

Futures traded higher after Donald Trump said late on Wednesday that he expects US forces to leave Iran within "two or three weeks". Oil prices eased following the remarks, with West Texas Intermediate down 2.61% to $98.73 a a barrel, while Brent crude slipped 2.61% to $101.77 a barrel. Traders also moved back into US Treasuries on expectations that easing geopolitical tensions may help contain inflation, with the yield on the benchmark ten‑year note falling to 4.284%, while its two‑year counterpart slipped to 3.764%.

Wednesday's pre-market moves followed an earlier unconfirmed report that suggested Iranian president Masoud Pezeshkian was open to ending the conflict if provided with certain guarantees. Pezeshkian made similar comments earlier in the month, saying the only way to end the war was "recognising" Iran's legitimate rights, payment of reparations, and firm int'l guarantees against future aggression".

On the macro front, US mortgage applications fell 10.4% in the week ended 27 March, according to the Mortgage Bankers Association, extending the prior week's 10.5% decline, with the latest slump coming as benchmark mortgage rates jumped 48 basis points over the course of the month. Applications to refinance a mortgage, which are typically more sensitive to short‑term interest rate moves, tumbled 17% on the week, leaving it down roughly 40% over the month, while applications to purchase a home slipped 3%.

Still to come, ADP's March employment change figures will be published at 1315 BST, while February retail sales data was slated for release at 1330 BST, S&P Global's March manufacturing PMI will be on deck at 1445 BST, and the Institute for Supply Management's March manufacturing PMI and January business inventories will follow at 1500 BST.

No major corporate earnings were slated for release on Wednesday.

Reporting by Iain Gilbert at Sharecast.com