U.S. stock-index futures were largely unchanged late Sunday after benchmark equity indexes finished the prior week at record levels, as higher oil prices and faltering U.S.-Iran talks contributed to a cautious backdrop ahead of a crowded calendar for Wall Street.
By 20:50 ET (00:50 GMT), S&P 500 Futures were down 0.1% at 7,189.75 points. Nasdaq 100 Futures had inched up 0.1% to 27,455.75 points, while Dow Jones Futures slipped 0.2% to 49,293.0 points.
The S&P 500 and NASDAQ Composite closed at record highs on Friday, concluding a fourth consecutive week of gains driven in part by strength in large-cap technology names. For the week, the S&P 500 rose 0.6% and the Nasdaq advanced 1.5%, while the Dow Jones Industrial Average fell 0.4% over the same period.
Oil prices pushed higher in Asian trading on Monday after U.S.-Iran negotiations broke down over the weekend. Brent crude strengthened to $108 per barrel as trade flows continued to be disrupted amid reports that the Strait of Hormuz remained largely shut, a development that has increased concern about prolonged constraints on global energy supplies.
On the diplomatic front, U.S. President Donald Trump on Saturday called off a planned diplomatic trip by a U.S. envoy to Pakistan that had been intended to advance talks with Iran, saying Tehran could start negotiations if it chose to. The first round of talks, held two weeks ago in Islamabad and led on the U.S. side by Vice President JD Vance, ended without a deal.
Market attention now turns to a packed week for corporate results and policy. Five of the so-called "Magnificent Seven" technology companies are slated to report earnings: Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN) and Meta Platforms (NASDAQ:META) are scheduled to release results on Wednesday, followed by Apple (NASDAQ:AAPL) on Thursday.
Investors will also be watching the Federal Reserve’s policy announcement on Wednesday. That meeting could mark the final one chaired by Jerome Powell before Kevin Warsh is expected to take over in May.
Key takeaways
- Futures were mostly flat late Sunday as markets weighed higher oil and stalled diplomacy against recent record closes in equities.
- Energy markets - particularly oil - reacted to disruptions in the Strait of Hormuz and a breakdown in U.S.-Iran talks, pushing Brent to $108 per barrel.
- Technology earnings and the Fed policy decision are central event risks this week, with five major tech companies reporting and a Fed meeting on Wednesday.
Risks and uncertainties
- Stalled U.S.-Iran negotiations may continue to elevate geopolitical risk and pressure energy markets, affecting sectors sensitive to oil prices such as energy and transportation.
- Disruption of the Strait of Hormuz and reduced oil flows creates uncertainty around supply, which could sustain volatility in energy prices and influence broader market sentiment.
- The Federal Reserve’s upcoming policy decision introduces policy risk for interest-rate sensitive sectors and could alter investor positioning ahead of major corporate reports.