S&P 500 futures flat as markets await Hormuz deal and inflation data
Early Monday morning in New York, doubts grew over whether the United States and Iran could quickly reach an agreement to reopen the Strait of Hormuz, leaving S&P 500 futures nearly unchanged. S&P 500 futures and Nasdaq-100 futures showed little movement, while Dow Jones Industrial Average futures also remained flat. Over the weekend, Iran denied holding any direct talks with the United States about reopening the waterway. That cooled investors’ earlier optimism that the two countries could reach an agreement allowing ships to pass freely through the strategic strait. WTI crude rose 1% on Sunday to slightly above $79 a barrel. Last week, Treasury Secretary Scott Bessent signaled that an agreement was close to being finalized. But President Donald Trump told Axios on Sunday that the United States and Iran were “just in half negotiations” and that he wanted Iran to face economic pressure. The three major U.S. stock indexes just posted their best week since April, and the S&P 500 closed last week at a record high. Friday’s July nonfarm payrolls report unexpectedly showed a contraction, strengthening expectations that the Federal Reserve might hold off on raising interest rates. Stocks rallied late Friday. According to the CME FedWatch Tool, federal-funds futures traders are currently pricing in about a 44% chance of a rate hike at the Fed’s September meeting, down from 67% a week earlier. Peter Graf, head of investments for the Americas at Amova Asset Management, said: “The stock market will probably welcome the dovish signal from this employment report. But for an economy with a declining working population, investors should be wary of its future growth potential.” Investors will closely watch this week’s consumer price index and producer price index reports for the latest inflation signals. No major economic data is scheduled for Monday. Traders are also watching a group of corporate earnings reports due this week, including results from consumer companies On and Cava Group, as well as technology companies Supermicro and CoreWeave.
S&P 500 futures and Nasdaq-100 futures showed little movement, while Dow Jones Industrial Average futures also remained flat.
Over the weekend, Iran denied holding any direct talks with the United States about reopening the waterway. That cooled investors’ earlier optimism that the two countries could reach an agreement allowing ships to pass freely through the strategic strait. WTI crude rose 1% on Sunday to slightly above $79 a barrel.
Last week, Treasury Secretary Scott Bessent signaled that an agreement was close to being finalized. But President Donald Trump told Axios on Sunday that the United States and Iran were “just in half negotiations” and that he wanted Iran to face economic pressure.
The three major U.S. stock indexes just posted their best week since April, and the S&P 500 closed last week at a record high.
Friday’s July nonfarm payrolls report unexpectedly showed a contraction, strengthening expectations that the Federal Reserve might hold off on raising interest rates. Stocks rallied late Friday. According to the CME FedWatch Tool, federal-funds futures traders are currently pricing in about a 44% chance of a rate hike at the Fed’s September meeting, down from 67% a week earlier.
Peter Graf, head of investments for the Americas at Amova Asset Management, said: “The stock market will probably welcome the dovish signal from this employment report. But for an economy with a declining working population, investors should be wary of its future growth potential.”
Investors will closely watch this week’s consumer price index and producer price index reports for the latest inflation signals. No major economic data is scheduled for Monday.
Traders are also watching a group of corporate earnings reports due this week, including results from consumer companies On and Cava Group, as well as technology companies Supermicro and CoreWeave.