- All three major indexes closed higher on Wednesday, with the Dow up 0.7%, the S&P 500 up 0.5%, and the Nasdaq up 0.8%.
- Washington called the Iran talks “productive,” while Iranian media said indirect negotiations were not viable.
- Oil prices fell as tensions appeared to ease, with WTI down 2.2% to $90 and Brent also down 2.2% to $102.
U.S. stock futures edged lower late Wednesday as traders weighed conflicting signals on U.S.-Iran ceasefire talks and falling oil prices after a broad market rebound.
As of 9.50 p.m. ET, Nasdaq 100, S&P 500, and Dow futures were all down 0.1%.
On Stocktwits, retail sentiment toward the SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust (QQQ) was ‘extremely bearish’ amid ‘high’ message volume, while sentiment toward the SPDR Dow Jones Industrial Average ETF Trust (DIA) was ‘bearish’ amid ‘high’ message volume.
US Market Drivers
Markets reacted to mixed signals on ceasefire negotiations between the U.S. and Iran after reports said Tehran is reviewing a U.S. peace proposal delivered through Pakistan, even as Iranian state media reported that the country would reject a ceasefire offer and instead push its own five-point framework that includes control over the Strait of Hormuz.
All three major U.S. indexes ended Wednesday’s session in positive territory:
| Index | Move | Close |
| Dow Jones Industrial Average | 0.66% | 46,429.49 |
| S&P 500 | 0.54% | 6,591.90 |
| Nasdaq Composite | 0.77% | 21,929.83 |
The White House said talks with Iran have been “productive” in recent days, while U.S. President Donald Trump said negotiations are ongoing and suggested Tehran is “talking sense.” However, Iranian media later reported that indirect talks were “not viable” at this stage.
On the other hand, the U.S. reportedly deployed more than 1,000 troops from the Army’s 82nd Airborne Division and ordered two Marine Expeditionary Units totaling roughly 5,000 personnel to the Middle East.
Oil prices fell during Wednesday’s session as traders bet tensions could ease. West Texas Intermediate crude dropped 2.2% to settle near $90.32 a barrel, while Brent crude also slid 2.2% to $102.22.
Still, shipping through the Strait of Hormuz remains severely constrained, with vessels seeking Iranian clearance to transit the waterway. The disruption has reduced crude flows and kept energy markets sensitive to every update from Washington and Tehran.
Markets also monitored global policy signals after Trump announced a rescheduled May 14-15 summit with Chinese President Xi Jinping in Beijing, keeping trade expectations in focus alongside developments in the Middle East ceasefire.
Ryan Detrick, chief market strategist at Carson Group, said recession risks remain limited and that “earnings continue to soar,” with forward 12-month S&P 500 estimates and profit margins both reaching new highs recently. He added that strong airline guidance and demand for AI investment point to “another solid year for investors” by the end of 2026, even as headlines remain uncertain.
Meanwhile, economist Peter Schiff said on X that “Iran knows they can win the war just by surviving long enough for Trump to surrender by claiming the biggest victory in the history of war.” He added that Iran may be betting U.S. policy decisions will be shaped more by poll numbers, oil prices, markets, and economic conditions.
Trending Stocks To Watch On NYSE, Nasdaq
Destiny Tech100 (DXYZ): Shares closed-end fund with heavy exposure to SpaceX, hit their highest level in over a month on Wednesday and extended gains by more than 7% in after-hours trading as buzz about SpaceX’s IPO built, with the Elon Musk-led company reportedly preparing to file its prospectus ahead of a potential June listing that could seek a valuation above $1.75 trillion.
Celsius Holdings (CELH): Shares fell about 3% to their lowest level in a year after Costco launched a Kirkland private-label energy drink priced roughly 55% below Celsius, though TD Cowen said the selloff looks overdone and reiterated a ‘Buy’ rating with a $66 price target.
DraftKings (DKNG): Shares fell roughly 8% to their lowest level in three years as investors reacted to recent developments, including a federal trademark lawsuit by the NCAA over DraftKings Inc.'s use of terms such as "March Madness" and "Final Four," as well as an anlayst flagging a delay in a Senate bill aimed at banning sports betting on prediction market platforms like Polymarket and Kalshi.
Arm Holdings (ARM): Shares surged 16% for their best day in a year after unveiling a new AGI data-center CPU, securing Meta as an initial customer, and receiving multiple Wall Street price-target increases.
Sarepta Therapeutics (SRPT): Shares surged about 35% on Wednesday after the company reported early study results for two experimental treatments targeting rare muscle diseases showed encouraging signs of activity in patients.
How Global Markets Are Performing Today
In broader markets, the yield on the benchmark 10-year U.S. Treasury note was at 4.33%, while gold traded around $4,510 an ounce after recovering more than 2% over the prior two sessions.
Asian markets were lower on Thursday, with stocks opening weaker in Australia and Japan. MSCI’s broadest index of Asia-Pacific shares outside Japan slipped about 0.06%.
Among the catalysts for Thursday are initial jobless claims data and remarks from several Federal Reserve officials, including Lisa Cook, Stephen Miran, Philip Jefferson, and Michael Barr.
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Editor's note: This story has been updated to more accurately reflect the drivers behind DraftKings' stock decline on Wednesday, specifically mentioning an analyst's note on legislative delays in regulating prediction market platforms.