Dow, S&P 500, Nasdaq Futures Climb On Trump’s ‘Positive’ Sentiment Around Iran War: GME, EBAY, SOUN, FNMA In Focus

• The president also said that discussions with Iran were ongoing and that they could result in something “very positive.” 
• Dow Jones futures gained 0.03% overnight, the S&P 500 futures were up 0.06%, and Nasdaq 100 futures edged 0.10% higher. 
• Meanwhile, Iran had said earlier in the day that it was assessing Washington’s response to its latest proposal to end the war.

U.S. stock futures climbed higher in Sunday’s overnight trading session as sentiment around the war in the Middle East heading to a resolution improved after U.S. President Donald Trump announced the possibility of shipping resuming through the Strait of Hormuz.

Dow Jones futures gained 0.03% overnight, while the S&P 500 futures were up 0.06% and Nasdaq 100 futures edged 0.10% higher as of 8.47 p.m ET.  

Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY), Invesco QQQ Trust (QQQ), and the SPDR Dow Jones Industrial Average ETF Trust (DIA) all rose in after-hours trading. Meanwhile, retail sentiment on Stocktwits for SPY and QQQ was in the ‘extremely bullish’ territory, while that of DIA was in the ‘bullish’ territory at the time of writing.

How Did US Markets Fare?

On Thursday, the S&P 500 and Nasdaq Composite closed 0.29% and 0.89% higher, respectively. Meanwhile, the Dow Jones Industrial Average lost more than 152 points to close down 0.31%.

US Market Drivers

U.S. stock markets surged to new records on the first trading day of May, with the S&P 500 and Nasdaq Composite touching intraday highs, bolstered by strong earnings from technology big-wigs, sustained demand for artificial intelligence, and easing geopolitical tensions.

Meanwhile, over the weekend, signs of easing tensions in the Strait of Hormuz and optimism over the war in Iran eased tensions, sending stock futures higher. Trump said in a post on Truth Social that the U.S. would help “free” some of the ships stranded in the strait.

“For the good of Iran, the Middle East, and the United States, we have told these Countries that we will guide their Ships safely out of these restricted Waterways, so that they can freely and ably get on with their business. Again, these are Ships from areas of the World that are not in any way involved with that which is currently taking place in the Middle East. I have told my Representatives to inform them that we will use best efforts to get their Ships and Crews safely out of the Strait. In all cases, they said they will not be returning until the area becomes safe for navigation, and everything else,” Trump said in the post.

Dubbed “Project Freedom,” Trump said the efforts would begin on Monday. The president also added that discussions with Iran were ongoing and that they could result in something “very positive.”

Jim Bianco, President and Macro Strategist at Bianco Research, said in a post on X that the “big news” from Trump signaled that the U.S. was no longer "stuck" since the circumstances had changed. “It now seems they (circumstances) are about to change tomorrow!” he said, indicating that the U.S. now had more control over the strait.

Meanwhile, Iran had said earlier in the day that it was assessing Washington’s response to its latest proposal to end the war.

Trending Stocks To Watch

GameStop Corp. (GME): Shares of the gaming company were up nearly 8% in extended trading hours over reports that CEO Ryan Cohen was considering a pivot to retail and investment, even as talks of a $56 billion takeover of eBay Inc. (EBAY) surfaced.

eBay Inc. (EBAY): The e-commerce giant was up more than 13% overnight over its alleged takeover talks in a $125 a share in cash-and-stock deal. The acquisition is intended to position eBay as a bigger competitor to Amazon.com, as per the latest reports.

SoundHound AI Inc. (SOUN): The company’s shares were up nearly 5% in after-market hours as optimism around its upcoming earnings drove prices higher. According to Fiscal.ai, Wall Street expects SoundHound AI to post a 40% increase in quarterly revenue, and a loss of $0.01 per share during the first quarter (Q1).

Federal National Mortgage Association (FNMA): Fannie Mae garnered attention after Wedbush analyst Michael Piccolo downgraded the company to ‘Neutral’ from ‘Outperform,’ citing the company's Q1 results that came in below expectations.

Broader Market Trends

Oil futures were marginally lower in Sunday’s overnight session as the conflict in the Middle East showed signs of abating. Brent crude futures expiring in July were down about 0.07%, trading at around $108.09 a barrel, while WTI crude futures expiring in June were down 0.21% to $101.73 a barrel at the time of writing.

Treasury yields on the benchmark 10-year were at 4.372%, while gold traded around $4,608.47 an ounce.

Asian markets opened higher on Monday, with the KOSPI, Nikkei 225 and SSE Composite indexes all in green. Australian stocks, however, were down at the open.

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