US stock futures turned negative. Nasdaq futures fell 0.38%; S&P futures fell 0.42%; Dow futures fell 0.46%. Trump appears determined to reach a deal with Iran, three senior Israeli officials say, while it is unlikely Iran will agree to U.S. demands.
President Donald Trump set off a rebound across markets by delaying planned air strikes against Iran’s energy assets, but many investors say the latest unpredictability just confirms their bias to cut back risk exposure.
US equity gauges jumped about 1% on Monday, and oil slid more than 10%, following Trump’s announcement of a five-day delay. Despite the rally, many fund managers are sticking to their view that investors should remain defensive due to the ongoing unpredictability.
“I’m not sure if this is really the end of the Iran situation,” said Chauwei Yak, chief executive officer at hedge fund GAO Capital in Singapore, adding that she hasn’t changed positions in size. “We think things might stretch on for a bit more. We are generally cautious until there is an even bigger drop, then it becomes cheap, or there are clearer signs of the war ending.”
