stock futures – U.S. equity futures edged lower as Wall Street weighed progress in Iran war negotiations and prepared for Thursday’s inflation reading tied to the Federal Reserve’s preferred gauge. S&P 500, Nasdaq-100 and Dow futures all fell early Monday, while markets acros
When the market opened the week, it did so with two heavy clocks ticking at once. One was counting toward a potential shift in Iran-related negotiations. The other was counting down to a closely watched inflation report that could push the Federal Reserve’s next move into sharper focus.
U.S. equity futures slipped early Monday. S&P 500 futures were down 0.5%, Nasdaq-100 futures fell 0.6%, and futures tied to the Dow Jones Industrial Average dropped 187 points, or 0.4%. The tone in Washington was cautious: Wall Street was assessing the latest developments in Iran war talks while it waited for the release of inflation data watched by the Fed.
Asia-Pacific trading closed mixed. Japan’s Nikkei 225 surged to a fresh record, rising 1.55% to end the session at 72,353.96. South Korea’s Kospi gained 0.69% to 9,114.55. Hong Kong’s Hang Seng Index slipped 0.63% in the final hour of trade. and the mainland’s CSI 300 was up 2.39% at 5. 059.66. Australia’s benchmark S&P/ASX 200 was 0.14% lower at 8,816.10.
In Europe, markets started the new week higher. The Stoxx 600 was up 0.12% as trading began, but most sectors were in the red, with losses led by retail and construction.
Oil moved with the diplomatic signal. Brent oil futures turned negative on Monday after mediators Qatar and Pakistan said U.S. and Iranian officials agreed on a roadmap to reach a final deal within 60 days. Brent crude futures for August gained in early Asian trading before falling 0.38% to $80.26 a barrel. U.S. West Texas Intermediate futures for July pared a 3% jump in earlier trading to be about 1% higher, at $77.52 per barrel.
The backdrop for this week is a market that had already been forced to recalibrate. The three leading U.S. indexes staged a comeback Thursday after a sell-off on Wednesday. when investor uncertainty about the trajectory of monetary policy weighed on sentiment. That Thursday rebound was led by a rise in chip stocks, helping the indexes finish the trading week higher.
Over the broader week, the S&P 500 gained nearly 1% and notched its 11th winning week in 12. The Dow Jones Industrial Average rose close to 1% over the period, and the Nasdaq Composite advanced more than 2%. The U.S. stock market was closed on Friday for the Juneteenth holiday.
The test now arriving for markets comes Thursday. Investors are set to get May’s reading on the personal consumption expenditures price index. the Fed’s preferred inflation gauge. Even excluding volatile food and energy prices. core PCE is expected to increase from April. according to economists polled by FactSet.
After last week’s hawkish Fed meeting, expectations for an interest rate increase were pulled forward to as soon as October. That has put traders on edge: any inflation reading strong enough to suggest the Fed may soon begin hiking rates could tighten financial conditions quickly.
Fundstrat Global Advisors’ Tom Lee laid out a split view of where volatility could land next. He said. “We still believe later this year there is going to be an abrupt change of market conditions. one that feels very much like a bear market. but we don’t want to stand and call a top. ” and added. “I think conditions are still favorable for stocks.” Lee pointed to possible catalysts later on. including the implementation of task forces at the Federal Reserve and supply chain impacts from the closure of the Strait of Hormuz—while still describing the near-term environment as positive.
stock futures S&P 500 futures Nasdaq-100 futures Dow futures Iran negotiations Federal Reserve personal consumption expenditures core PCE inflation data Brent oil West Texas Intermediate Tom Lee Nikkei 225 Kospi Hang Seng CSI 300 Stoxx 600