Stock market today: Dow, S&P 500, Nasdaq futures fall as Trump deadline for Iran deal nears

Contracts on the S&P 500 (ES=F) and tech-exposed Nasdaq 100 (NQ=F) declined roughly 0.4% and 0.5%, respectively. Dow Jones Industrial Average futures (YM=F) slipped 0.2%, with the pullback coming after Wall Street stocks finished in positive territory on Monday.

Markets are closely tracking developments in the Middle East. Trump has given another 48-hour deadline for Iran to reopen the Strait of Hormuz, set to expire Tuesday evening. Trump issued the deadline via Truth Social in an erratic post stating "Open the F*****’ Strait, you crazy bastards, or you’ll be living in Hell - JUST WATCH! Praise be to Allah". A proposal for peace, reportedly backed by Pakistan, is under consideration in negotiations between the US and Iran.

Investor sentiment appears to reflect cautious optimism that tensions may ease in the near term, helping explain Monday’s market gains. Trump issued a statement on Monday claiming "Unfortunately, the American people would like to see us come home" in relation to the length of the war in Iran. Traffic in the Strait of Hormuz has increased this week, alleviating some pressures for oil, with China and Japan receiving the largest number of tankers.

Looking ahead for the week, traders will be focused on preliminary figures for February durable goods orders, due Tuesday morning, as well as US inflation data due out Friday. Quarterly results from Delta (DAL) highlight reports for the week, expected Wednesday.