Dow Jones futures gain ahead of second round of US-Iran talks

• Dow Jones futures rise on improved sentiment as Iran plans second-round US talks before the ceasefire deadline.
• Wall Street closed softer on Monday as renewed US-Iran tensions escalated over the weekend.
• Trump said he is unlikely to extend the truce with Tehran if no deal is reached.

Dow Jones futures gain 0.14% above 49,700, with S&P 500 and Nasdaq 100 futures also advancing 0.13% and 0.27% to near 7,160 and 26,820, respectively, during the European hours on Tuesday ahead of the United States (US) regular opening.

US stock futures advance as sentiment improves, supported by reports that Iran will send a delegation to Islamabad for a second round of talks with the US before the truce expires. US President Donald Trump said Vice President JD Vance will travel to Pakistan to resume negotiations, “either Tuesday night or Wednesday morning,” per Bloomberg.

In regular US trading on Monday, Wall Street closed on a softer note. The Dow Jones edged down 0.01%, while the S&P 500 and Nasdaq 100 fell 0.24% and 0.26%, respectively, pulling back from record highs as US-Iran tensions escalated again over the weekend. Major technology stocks led the losses, with Broadcom and Meta dropping more than 2%, while Microsoft, Nvidia, and Alphabet declined over 1%.

President Trump stated he is unlikely to extend the truce with Tehran if no agreement is reached before it expires this week, adding that the Strait of Hormuz will remain blocked until a deal is finalized. These developments lifted oil prices and inflation risks, which fade the likelihood of Federal Reserve (Fed) rate cut bets.