Equity futures point to a sharply higher opening this morning after President Trump announced a potential deescalation in the war in Iran. President Trump said via Truth Social that the U.S. and Iran have engaged in productive conversations around a "complete and total resolution of our hostilities in the Middle East," adding that the talks will continue and he has instructed the Department of War to postpone any strikes on Iranian power plants and energy infrastructure. 

The stock market was on track to extend last week's losses, but the commentary saw equity futures surge higher, putting the major averages in position to challenge their respective 200-day moving averages at the open. Oil made a sharp move lower in response, with crude oil currently down $6.45 (-6.6%) to $91.78 per barrel. 

The major averages each shed roughly 2% in last week's action as higher oil prices and Treasury yields put broad pressure on the stock market.

Developments on the geopolitical and energy fronts will likely be a key driver of action today, as corporate news flow is relatively light, with no earnings reports on the calendar. 

Similarly, today's economic data is limited to the 10:00 a.m. ET release of the January Construction Spending Report (Briefing.com consensus 0.1%). 

In corporate news:

• OpenAI is set to double its workforce, according to Financial Times. 
• Banco Santander SA (SAN 11.04, +0.51, +4.8%) was upgraded to Overweight from Equal Weight at Morgan Stanley. 
• Elliot Investment Management builds a stake in Synopsys (SNPS 432.02, +11.70, +2.3%), according to The Wall Street Journal. 

Reviewing overnight developments:

Equity indices in the Asia-Pacific region started the week on a sharply lower note with South Korea's Kospi (-6.5%) at the forefront of the weakness amid ongoing concerns about the trajectory of energy prices. Japan's Nikkei: -3.5%, Hong Kong's Hang Seng: -3.5%, China's Shanghai Composite: -3.6%, India's Sensex: -2.5%, South Korea's Kospi: -6.5%, Australia's ASX All Ordinaries: -0.9%.

In news:

• Taiwan's February exports to the U.S. were up 24% yr/yr while exports to Japan grew 18% yr/yr.
• Japan will spend about JPY800 bln to offset high gasoline prices.
• South Korea's President Lee nominated Shin Hyun-song to be the next governor of the Bank of Korea.

In economic data:

• Singapore's February CPI 0.6% m/m (last -0.5%); 1.2% yr/yr (last 1.4%). February Core CPI 1.4% yr/yr (last 1.0%)

Major European indices trade higher after overcoming their earlier weakness after President Trump acknowledged that talks are being held with Iranian officials to end hostilities. STOXX Europe 600: +0.5%, Germany's DAX: +1.0%, U.K.'s FTSE 100: -0.3%, France's CAC 40: +0.7%, Italy's FTSE MIB: +0.6%, Spain's IBEX 35: +0.8%.

In news:

• Municipal elections in France produced some gains for National Rally.
• Germany has maintained its debt issuance plans for Q2.
• European Central Bank policymaker Kazimir said that rates remain in good place while policymaker De Guindos said that the central bank will react if necessary.

In economic data:

• Spain's January trade deficit EUR4.00 bln (last deficit of EUR5.57 bln)

[BRIEFING.COM] Stocks ended a tough week on a lower note, as rising oil prices and Treasury yields continued to exert broad pressure on the market. The S&P 500 (-1.5%), Nasdaq Composite (-2.0%), and DJIA (-1.0%) finished the week lower across the board, plunging further beneath their 200-day moving averages. The S&P 500 just narrowly avoided closing below the 6,500 mark (6,506), which would have been the first close below that level since early September.

Today's pressure was more or less a continuation of the factors that have pressured the market over the past several weeks. Oil climbed back above the $98 per barrel mark, with crude oil futures settling today's session $2.41 higher (+2.5%) at $98.12 per barrel. Stocks bounced off of session lows late in yesterday's session after Israeli Prime Minister Benjamin Netanyahu told reporters that the war in Iran would be over sooner than expected, but today's developments saw that optimism fade. 

Stocks moved off of their opening highs this morning after The Wall Street Journal reported that the Pentagon is sending three warships and thousands of additional troops to the Middle East. CBS News reported later in the afternoon that the Pentagon has made plans to use ground forces inside of Iran. 

Concerns that the conflict will last longer than expected and continue to disrupt oil markets are weighing on inflation expectations and, in turn, the market's rate cut expectations. The CME FedWatch Tool now assigns a roughly 25% probability to a rate hike at the December FOMC meeting. 

While stocks opened mixed today, nearly every corner of the market suffered losses, with some notable retreats in the mix. 

The utilities sector (-4.1%) faced the widest loss, with several electric utilities companies such as Vistra Corp. (VST 146.20, -21.17, -12.65%) and Constellation Energy (CEG 281.99, -34.48, -10.90%) facing double-digit losses. 

The real estate sector (-3.2%) also shed several percentage points today, which coincided with another sharp move higher in Treasury yields (the 10-year note yield settled up 11 basis points to 4.39%). 

Meanwhile, the information technology (-2.2%), consumer discretionary (-1.9%), and communication services (-1.5%) sectors faced pressure across their mega-cap components, with the Vanguard Mega Cap Growth ETF finishing 1.8% lower. 

Elsewhere in the technology sector, Super Micro Computer (SMCI 20.53, -10.26, -33.32%) plummeted today after CNBC reported that a few employees were charged with smuggling chips into China.

Even the energy sector logged a flat finish, giving back its earlier gains throughout the afternoon. 

Only the financials sector (+0.2%) escaped with a gain. Major banking names traded mostly higher, offsetting renewed weakness across asset managers. Insurance names such as Marsh McLennan (MRSH 176.48, +5.57, +3.26%) and Aon (AON 325.63, +8.64, +2.73%) outperformed. 

Outside of the S&P 500, the Russell 2000 (-2.3%) and S&P Mid Cap 400 (-2.2%) lagged as risk sentiment took another step back today. 

All told, this week's price action reflects a market increasingly weighed down by the combined pressures of rising oil prices, higher Treasury yields, and escalating geopolitical tensions. With the major averages breaking below key technical levels, sentiment has deteriorated as investors reassess the outlook for inflation and monetary policy.

U.S. Treasuries faced more pressure on Friday, making for a continuation of a three-week selling streak that has been spurred by inflationary concerns stemming from the sharp rise in the price of oil and uncertain maritime security in the Persian Gulf's shipping lanes. The 2-year note yield settled up six basis points to 3.89% (+16 basis points this week), and the 10-year note yield settled up 11 basis points to 4.39% (+10 basis points this week). 

There was no economic data of note today.

• S&P Mid Cap 400: -0.3% YTD
• Russell 2000: -1.8% YTD
• S&P 500: -5.0% YTD
• DJIA: -5.2% YTD
• Nasdaq Composite: -6.9% YTD