Stock market today: S&P 500, Nasdaq, Dow futures climb as the US and Iran inch toward peace talks

May 4, 2026 - 07:51

The S&P 500, Nasdaq, and Dow Jones Industrial Average all pushed higher in early trading Monday, with futures pointing to a positive open for the week. Investors found fresh optimism in reports that the United States and Iran are moving closer to formal peace negotiations, a development that could ease tensions across the Middle East and stabilize global energy markets.

The potential for diplomatic progress between the two nations has been a key driver of sentiment in recent sessions. Traders are betting that a reduction in geopolitical risk could lower the volatility premium currently baked into oil prices, which have remained elevated due to fears of supply disruptions. A de-escalation would also remove a major source of uncertainty that has weighed on broader equity valuations.

Energy stocks saw mixed activity in premarket trading, as the prospect of a diplomatic breakthrough tempered some of the recent gains in crude-linked shares. Meanwhile, technology and growth sectors led the advance, with the Nasdaq outperforming its peers. Market participants are also looking ahead to key economic data later this week, including inflation readings and consumer spending figures, which could influence the Federal Reserve's next policy moves.

The rally comes after a volatile stretch for Wall Street, where concerns over interest rates and global instability had kept buyers on the sidelines. For now, the focus remains squarely on the diplomatic front, with any concrete steps toward peace likely to sustain the upward momentum.