Dow futures rally 500 points as oil prices fall after U.S. and Iran pause attacks: Live updates

U.S. equity futures rallied sharply overnight after Washington and Tehran paused military strikes over the weekend, with Dow futures jumping 500 points. West Texas Intermediate crude fell on the de-escalation, pulling energy costs lower. The relief proved short-lived: the S&P 500 closed down 0.2% Monday as semiconductor stocks reversed early gains, and the Nasdaq Composite also slipped into negative territory by the close.

The whipsaw underscores fragile sentiment. Futures priced in geopolitical relief, but domestic sector rotation—particularly weakness in chips—overwhelmed the macro tailwind by the bell. The S&P 500's failure to hold gains despite falling oil and a 500-point Dow futures pop signals traders remain skeptical of durability in any bounce tied to Middle East headline risk.

Oil's decline typically benefits rate-sensitive growth names, yet chip stocks dragged indexes lower anyway, suggesting idiosyncratic sector concerns or profit-taking outweighed the commodity relief.