S&P 500 futuresedged lower on Sunday night amid growing doubts that the U.S. and Iran will soon strike a deal to open the Strait of Hormuz.
Futures tied to the broad index slipped about 0.2%, whileNasdaq-100 futuresadded 0.1%.Dow Jones Industrial Average futuresshed 99 points, 0.2%.
Investor optimism that the U.S. and Iran might be close to coming to an agreement to allow vessels to freely transit the critical Hormuz strait dimmed over the weekend after Irandenied engagingin any direct negotiations with the U.S. around opening the waterway.WTIcrude oil rose 1% to just above $79 a barrel on Sunday.
Last week, Treasury SecretaryScott Bessent's comments to CNBC suggested a deal was imminent. But PresidentDonald Trumptold 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 indexes are coming off theirbest weeks since April. TheS&P 500finished last week at an all-time closing record.
Stocks got an end-of-week boost on Friday after the July nonfarm payrolls report showed anunexpected contraction, raising hopes for investors that the Federal Reserve will hold off on hiking interest rates. 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'sFedWatchtool.
"The stock market is likely to welcome the dovish implications of the [jobs] report," said Peter Graf, investing chief at Amova Asset Management Americas. But, "investors should be wary of the future growth potential of an economy where fewer people are working."
Investors will closely monitorconsumer and producer price index readingsdue 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 asOn HoldingandCava Group, as well as technology firms includingSuper MicroandCoreWeave.
Investors come off winning week
Despite Sunday's muted action, Wall Street is heading into the week with positive momentum.
The three major indexes are coming off theirbiggest weekly gains since Apriland recorded back-to-back winning weeks. What's more, theS&P 500finished last week at an all-time closing record.
S&P 500 futures flat; WTI rises
S&P 500 futuresare little changed shortly after 6 p.m. ET on Sunday.
WTIcrude oil rose 1% to just above $79 a barrel amid concern among traders that the U.S. and Iran may not have a deal coming soon.
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