S&P 500 and Nasdaq 100 futures ticked higher Tuesday as reports of fresh efforts to de-escalate the Middle East conflict boosted sentiment, with traders also assessing corporate earnings and positioning ahead of March producer price data.

Delegations from the U.S. and Iran could resume talks in Pakistan to end the war this week, ‌sources told Reuters. This came after U.S. President Donald Trump said Iran had been in touch and wanted to ​make a deal, but he would not agree to any outcome that allows Tehran to have a nuclear weapon.

This underscores the market's sensitivity to developments in the region, with even tentative signs ⁠of an off-ramp sufficient to encourage investors eager to positive news.

At 8:06 a.m. EST, Dow E-minis were down 3 ​points, or 0.01%, S&P 500 E-minis were up 13 points, or 0.19%, and Nasdaq 100 E-minis were up 113 points, or ⁠0.44%.

The S&P 500 has recouped most of its losses since the start of the war, while the Nasdaq 100 logged its nine-day winning streak on Monday, its longest rally since September 2025.

"Given the potential for further talks, investors remained hopeful that a de-escalation would be achieved, even as yesterday saw the ‌U.S. blockade begin...," analysts at Deutsche Bank said in a note.

The U.S. military on Monday began a blockade ​of all maritime traffic ‌entering or leaving Iranian ports and coastal areas after weekend talks between Washington and Tehran failed to reach a deal to end the war.

EARNINGS EYED FOR DIRECTION

A busy slate of ‌quarterly earnings is also expected to guide the market.

BlackRock gained 2.4% in premarket trading after the asset manager reported a rise in first-quarter profit on strong inflows into its exchange-traded funds and a sharp increase in performance fees.

JPMorgan and ⁠Wells Fargo declined 0.8% and 2.5%, respectively, following their first-quarter ‌results.

Investors will watch out for Citigroup results ⁠later in the day, with the bank's shares down 0.6%.

Johnson & Johnson shares were flat post earnings.

"Despite a messier macro backdrop, the earnings season begins from ⁠a constructive ⁠fundamental starting point," said Anthony Saglimbene, chief market strategist at Ameriprise Financial.

"The next few weeks of profit reports will likely need to confirm that earnings momentum is broad enough ‌and guidance firm enough to support stock prices after a period of elevated volatility and, in some pockets, still above-average valuations."

A fresh reading of the producer price index is also awaited, days after separate data showed that U.S. consumer prices increased by the most in nearly ‌four years in ​March, driven by a record jump in ‌gasoline and diesel costs.

Later in the day, commentary from several Federal Reserve policymakers will be parsed for hints on how the central bank is assessing the impact of the U.S.-Iran war.

Elsewhere, United Airlines and American ​Airlines rose 2.4% and 6.8%, respectively.

United Airlines CEO Scott Kirby pitched a potential merger with American Airlines to Trump in late February, two sources said, raising the prospect of an industry-reshaping deal.