Stock futures slide after Monday’s relief rally; traders eye latest developments in Iran: Live updates – CNBC
Traders work on the floor of the New York Stock Exchange at the opening bell on March 24, 2026.
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The S&P 500 pulled back on Tuesday, giving back some of the sharp gains seen in the previous session, as crude prices rose again while the Iran war moved further into its fourth week.
The broad market index lost 0.37% and ended at 6,556.37, while the Dow Jones Industrial Average shed 84.41 points, or 0.18%, and settled at 46,124.06. The Nasdaq Composite dropped 0.84% and closed at 21,761.89.
President Donald Trump on Tuesday said that the U.S. is “in negotiations right now” with Iran, adding that “the other side, I can tell you, they’d like to make a deal.”
This comes after Trump said in a Truth Social post Monday that the U.S. and Iran have held “very good and productive conversations regarding a complete and total resolution of our hostilities in the Middle East.” That post propelled the major averages more than 1% higher in the prior day. Iranian state media reported that there were no direct talks between the two countries, however.
Confusion has grown among investors on Wall Street over how effective the talks to end the war were, given that Israel and Iran have since continued to exchange strikes in the wake of the president’s Monday comments, per Israeli authorities. The Pentagon is also reportedly planning to deploy around 3,000 soldiers to the Middle East, though the U.S. has not made a decision to put boots on the ground in Iran.
Oil prices resumed their rally Tuesday after tumbling in the prior session. Global benchmark Brent crude futures added 4.55% to settle at $104.49 a barrel. West Texas Intermediate crude futures settled up 4.79% to $92.35 a barrel.
Energy was also the S&P 500’s top-performing sector during the session, rising 2%. That puts its month-to-date gains at more than 9%. It is the only S&P 500 sector in positive territory in that timeframe.
“What we’re seeing at present is a lot of uncertainty in Iran, and as a result, I think the market goes sideways, with a fair amount of chop to performance, until that visibility improves,” said Terry Sandven, chief equity strategist at U.S. Bank Asset Management. “If the S&P [500] closes below 6,500, you probably will see some more downside.”
Investors were offered other encouraging signs Tuesday, to be sure, as Pakistan has offered to facilitate talks between the two countries.
Trump over the weekend had threatened an attack on Iranian power plants if the Strait of Hormuz wasn’t reopened. Iran, in turn, said that it would target U.S. infrastructure as a retaliatory tactic.
