U.S. stock futures decline, after Wall Street rose earlier on hopes that the Iran war might be nearing an end.

Investing.com - U.S. stock index futures declined Monday evening, after major Wall Street indices closed higher during regular trading hours. Despite U.S. President Donald Trump stating that the war between the U.S. and Israel against Iran could end soon, investors remain cautious.

As of 20:25 Eastern Time (00:25 GMT), S&P 500 futures fell 0.5% to 6,769.0, Nasdaq 100 futures dropped 0.5% to 24,860.50, and Dow Jones futures declined 0.4% to 47,584.0.

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Wall Street closes higher; Trump says war could end soon

On Wall Street, major stock indexes closed higher on Monday, recovering from early losses caused by soaring oil prices.

The Dow Jones Industrial Average rose 0.5%, the S&P 500 increased 0.8%, and the Nasdaq Composite surged 1.4%, as investors found some reassurance in Trump’s comments about the conflict.

Trump indicated that the war might end soon, suggesting that military progress is faster than expected.

Despite Iran uniting around new hardline leader Mojtaba Khamenei (son of former Supreme Leader Ali Khamenei), Trump made these remarks.

The energy market remains a focus for investors. Oil prices surged sharply early this week, approaching $120 per barrel on Monday, amid concerns that disruptions in Middle Eastern supply could threaten global supplies.

The spike in oil prices has raised fears that higher energy costs could significantly slow the U.S. economy, while also eroding consumer purchasing power and corporate profit margins.

However, oil prices retreated during Asian trading on Tuesday, easing from the sharp gains seen the previous day.

Oil price surge sparks inflation concerns

Recent oil price increases have intensified inflation worries. Persistently high energy costs could push overall inflation higher again, complicating the outlook for central banks that had been preparing to gradually ease monetary policy.

Investors are awaiting a batch of key U.S. economic data later this week, which could influence expectations for Federal Reserve policy.

The Consumer Price Index report for January is scheduled for release on Wednesday, followed by the Personal Consumption Expenditures Price Index— a favored inflation indicator for the Fed— on Thursday.

These reports are expected to provide further clues about the direction of U.S. interest rates in the coming months.

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