Dow futures jump over 400 points after reports of Trump seeking Iran war exit

US futures surged sharply Monday (March 30) night with Dow jumping more than 400 points after reports said President Donald Trump is considering winding down the US military campaign against Iran even if the Strait of Hormuz remains closed. 

Officials from the Trump administration told Wall Street Journal that a mission to push Iran into reopening the waterway would extend the campaign beyond its timeline of four to six weeks.  

The report lifted futures linked to the Dow Jones which is up 437 points

while S&P 500 are up 59.50 points. Nasdaq 100 futures too is up 205.25 points.

Dow Jones and S%P 500 are gaining ground from earlier in the evening when their futures were down 20 points and 3.50 points, respectively. Nasdaq 100 futures showed a sharper decline earlier, down 179.39 points or 0.78%.

The moves also follow a mixed close on Monday, when the S&P 500 dropped 0.39% to 6,343.72, marking its third straight day of losses. The Nasdaq Composite slid 0.73%, while the Dow Jones Industrial Average edged up 0.11%.

Inflation grounded

Fed Chair Jerome Powell's comments assuring inflation is in check had done little to uplift or sway market sentiment in either direction. Powell said the US Federal Reserve is committed to bringing inflation back to its 2% target and signalled no rush in making policy changes amid extreme global uncertainties.

“Inflation expectations do appear to be well anchored beyond the short term, but nonetheless, it’s something we will eventually maybe face the question of what to do here,” he said.

Powell also commented that the impact of West Asia war on energy is short-lived, despite rising prices.  

Trump threatens to attack key infrastructure

The moves also come as US President Donald Trump threatened to launch further attacks and "blow up" Iran if it continues to close the Strait of Hormuz while claiming to be in talks with a "new and more reasonable regime".

"Great progress has been made but, if for any reason a deal is not shortly reached, which it probably will be, and if the Hormuz Strait is not immediately 'Open for Business,' we will conclude our lovely 'stay' in Iran by blowing up and completely obliterating all of their Electric Generating Plants, Oil Wells and Kharg Island (and possibly all desalinisation plants!),' Trump posted on Truth Social.

Also Read: Powell says Fed can look past energy shock, but won’t ignore inflation risks