Goldman Sachs Says Buy the Dip as Iran’s Secret CIA Outreach Lifts Stock Futures

TLDR

• Goldman Sachs strategists say buy stock dips, not panic, as economic fundamentals remain strong
• Iran-Israel conflict entered its fifth day, with fresh strikes on Tehran and markets whipsawing
• Iran reportedly reached out to the US via the CIA to explore peace talks, boosting futures
• Oil prices pulled back slightly on peace talk news, with Brent crude near $82 a barrel
• S&P 500 and Nasdaq futures rose after Iran’s reported outreach, reversing earlier losses

US stock futures climbed Wednesday after reports that Iran’s Ministry of Intelligence quietly reached out to the CIA to explore ending the conflict with Israel.

Contracts on the S&P 500 rose 0.1% and the Nasdaq 100 gained about 0.2%, reversing earlier losses. The Dow Jones futures traded near flat after all three major benchmarks closed sharply lower on Tuesday.

The conflict entered its fifth day Wednesday. Israel launched fresh strikes on Tehran as Iran prepared for the funeral of Supreme Leader Ali Khamenei, who was killed in weekend attacks.

The fighting has rattled global markets. Korea’s main stock benchmark posted its biggest single-day crash on record amid fears about regional spillover.

Reports of the Iranian diplomatic approach briefly calmed nerves on Wall Street. However, US officials were said to be skeptical of the move, and some analysts dismissed it as too early to be meaningful.

Goldman Sachs Says Stay Calm and Buy

Goldman Sachs strategists, led by Peter Oppenheimer, published a note telling investors that pullbacks should be treated as buying opportunities. They argued that the depth of any decline would be limited by strong earnings growth and underlying economic resilience.

The team did acknowledge that all global equity sectors are expensive relative to their 20-year histories. This makes markets more sensitive to shocks like the Iran conflict and fears around AI disruption.

Oil and the Strait of Hormuz

Soaring oil prices have become a central concern. President Trump said Tuesday the US would provide insurance and escorts for oil tankers through the Strait of Hormuz, which has seen traffic stall due to Iranian threats.

Brent crude futures pulled back over 2% on the peace talk news, trading near $82 a barrel. West Texas Intermediate dropped to around $75.

Higher oil prices risk feeding inflation, which would reduce the Federal Reserve’s room to cut interest rates.

Investors are watching Wednesday’s ADP private payroll report closely. It comes ahead of Friday’s monthly jobs data, both key inputs for Fed rate expectations.

Earnings reports from Broadcom, Costco, and Alibaba are also scheduled this week.

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