Market Update After Tensions Rise with Iran
On May 7, 2026, stock futures were relatively stable after a robust week for Wall Street, despite a surge in oil prices. This spike followed President Trump’s rejection of Iran’s latest proposal to resolve the ongoing conflict.
Dow futures experienced a slight dip of 63 points (0.1%), reflecting the performance of the Dow Jones Industrial Average. Meanwhile, S&P 500 futures hovered around the flat line, while Nasdaq 100 futures saw a modest increase of 0.1%, bolstered by advancements in Micron Technology stocks and other chip manufacturers, partly due to rising prices of memory chips.
Sunday’s trading showed that the S&P 500 and Nasdaq Composite both gained over 2% and 4% respectively last week. Remarkably, these indexes recorded their first six consecutive weeks of gains since 2024. Additionally, the Dow noted a 0.2% rise for the week, marking its fifth week of positive movement in a span of six weeks.
The advance in stock prices followed an encouraging U.S. nonfarm payroll report for April, indicating a rise of 115,000 jobs, which surpassed economists’ expectations of 55,000. The S&P 500 and Nasdaq reached record highs by the end of Friday’s session.
In the meantime, Iran has presented a new plan to U.S. negotiators, focusing on resolving the long-standing conflict. According to the semi-official Tasnim news agency, sources indicated that this counter-proposal seeks to address the war comprehensively and lift sanctions on Tehran.
President Trump responded to this development on Truth Social, expressing discontent with the proposal, labeling it “completely unacceptable.”
The aftermath of Trump’s comments saw oil prices climb, with U.S. West Texas Intermediate futures increasing by 2% to exceed $97 per barrel, while international Brent crude oil futures rose similarly, reaching over $103 per barrel.
Despite the turmoil, market analysts believe that the U.S. market may remain sturdy amid these uncertainties. Rick Rieder, BlackRock’s chief investment officer for global fixed income, suggested that while the conflict in Iran and the resulting oil price spikes might slightly hinder economic progress, larger structural factors would likely ensure the economy remains in reasonably good condition.
This upcoming week, investors are expected to pay close attention to April’s consumer and producer price indexes, which could shed light on inflation trends influenced by the conflict. Earnings reports from companies like Under Armour and Cisco will also be on the radar for traders.
