U.S. stock futures climbed Monday after President Donald Trump called off a planned military strike against Iran, pushing oil prices lower on the first trading day of August.
The Dow Jones Industrial Average futures were up 413 points, or 0.8%, while S&P 500 futures gained 0.6% and Nasdaq-100 futures moved 0.4% higher
Brent crude traded at $83.39 a barrel, off 5.2%, and West Texas Intermediate settled at $79.45 a barrel, a decline of 6.2%. The 10-year Treasury yield retreated 6 basis points to 4.68% as inflation worries receded somewhat. Trump said Sunday he was standing down from a planned attack on Iran, with diplomacy set to resume between the two nations starting Monday.
Friday media reports had suggested the president was moving toward a new round of strikes, with a negotiated end to the conflict looking increasingly unlikely and energy prices climbing, according to CNBC. The prospect of a deal to reopen the Strait of Hormuz drove the pullback in crude prices, according to The Wall Street Journal. Still, the relief rally came with reservations.