Traders work on the floor of the New York Stock Exchange.
NYSE
S&P 500 futures edged higher early Monday amid growing doubts that the U.S. and Iran will come to a lasting resolution to the conflict in the near term.
Futures tied to the broad index edged up 0.16%, while Nasdaq-100 futures added 0.46%. Dow Jones Industrial Average futures were trading just below the flatline.
Iran has said it is closing in on a deal with Oman to reopen the Strait of Hormuz, but Tehran has continued to resist direct negotiations with the U.S until several conditions are met.
Iranian Foreign Minister Abbas Araghchi said Sunday there was “no possibility of restarting negotiations” as long as the U.S. continues violating the June memorandum of understanding, without compensating for its “violations,” according to Tasnim News Agency, a semi-official news outlet associated with the Islamic Revolutionary Guard Corps. WTI crude oil was up more than 1% early on Monday.
Last week, Treasury Secretary Scott Bessent‘s comments to CNBC suggested a deal was imminent. But President Donald Trump told Axios on Sunday that the U.S. was “only semi-negotiating” with Iran and wanted the Middle Eastern country to feel economic pressure.
The three major U.S. indexes are coming off their best weeks since April. The S&P 500 finished last week at an all-time closing record.
Stocks got an end-of-week boost on Friday after the July nonfarm payrolls report showed an unexpected contraction, raising hopes for investors that the Federal Reserve will hold off on interest rate hikes. Fed funds futures traders now price in a roughly 44% likelihood that the central bank raises rates at its September meeting, down from a 67% reading seen a week prior, according to CME’s FedWatch tool.
Investors will closely monitor consumer and producer price index readings due out this week for the latest insights on inflation. No major economic reports are expected on Monday.
Traders will also be watching for earnings reports due out this week from consumer-facing companies such as On Holding and Cava Group, as well as technology firms including Super Micro and CoreWeave.
Asia-Pacific markets closed broadly higher on Monday as the major bourses tracked Friday’s gains in the U.S.
Japan’s Nikkei 225 added 2.1% to close at 66,970, while Hong Kong’s Hang Seng index added 1%. South Korea’s Kospi gained 0.65% and the small-cap Kosdaq advanced 7%.
European stocks opened broadly flat on Monday as investors mulled uncertainty over the status of the critical shipping route.
London’s FTSE 100 was 0.1% lower, while France’s CAC 40 was flat and Germany’s DAX added 0.1%.