Automated Translation by Reuters using machine learning and generative AI technology. Please refer to the following warning: https://bit.ly/rtrsauto
– Futures contracts: Dow Jones down 0.04%, S&P 500 down 0.08%, Nasdaq down 0.09% – Oil prices surge 3% due to tensions with Iran – Intel rises after Friday rebound (Latest news before market opening) by Ragini Mathur and Utkarsh Hathi
Major Wall Street indexes were set to open lower on Monday, marking a pause after last week’s record rebound, as renewed concerns over the deadlock in negotiations between the United States and Iran drove up oil prices and tempered risk appetite.
President Trump’s swift rejection of Iran’s response to a U.S. peace proposal has raised fears that the 10-week-old conflict could prolong and continue to disrupt maritime traffic in the Strait of Hormuz, leading to a spike in crude oil prices.
“Given that most earnings are now behind us, we need to focus on restoring oil flow in the strait and lowering energy prices, which is simply not the case today,” said Art Hogan, chief market strategist at B Riley Wealth.
U.S. stocks reached new highs last week, with the S&P 500 and Nasdaq both closing at record levels on Friday, supported by optimistic corporate results, a strong monthly jobs report, and hopes for a swift resolution of the Middle East conflict.
At 8:37 am Eastern Time, E-mini futures on the Dow were down 20 points, or 0.04%, S&P 500 futures down 5.75 points, or 0.08%, and Nasdaq 100 futures down 27.75 points, or 0.09%.
Investors will now turn to Tuesday’s consumer price index data, expected to show a slight inflation increase in April, with pressure on energy prices due to the Middle East conflict.
Although the U.S. is a net oil exporter, concerns about the war’s impact on consumer and business demand persist. Monthly production and retail sales figures are also expected later in the week.
A meeting between Trump and Chinese President Xi Jinping is also anticipated later this week, during which the two leaders are expected to address Iran, Taiwan, artificial intelligence, and nuclear weapons, while assessing the extension of an agreement on critical minerals.
The first-quarter earnings season is coming to a close, with much better-than-expected performances by companies, especially in the technology sector, driving stocks to new highs.
Major companies releasing their results this week include tech networking giant Cisco, semiconductor equipment manufacturer Applied Materials, and heavyweights Nvidia and Walmart later in the month.
On Monday, Mosaic fell 6.4% in pre-market trading after the fertilizer maker withdrew its annual phosphate production forecast.
Media giant Fox Corp surged 5.6% after surpassing Wall Street estimates for its third-quarter revenue.
Intel climbed 4.3% after jumping 14% on Friday following a report of a preliminary chip manufacturing agreement with Apple.
Other movers included some airline stocks declining, as the rise in oil prices squeezed their margins. Southwest Airlines, Delta Air Lines, Alaska Air, and United Airlines fell 1% to 1.5%.
