U.S. stock futures showed little movement Monday evening following a downbeat session on Wall Street, where renewed tensions between the United States and Iran lifted crude oil and raised questions about inflation's trajectory.
At about 20:48 ET (00:48 GMT), S&P 500 Futures were unchanged at 7,768.0 points, Nasdaq 100 Futures were steady at 30,107.75 points, and Dow Jones Futures traded 0.1% lower at 53,512.0 points.
Earlier in the regular session, the three major U.S. indexes finished in negative territory. The Dow Jones Industrial Average slipped 0.5%, the S&P 500 declined 0.5%, and the Nasdaq Composite fell 0.3%.
Energy names stood out as the lone S&P 500 sector to post gains, rising 0.9% as crude oil prices climbed by more than $2 a barrel. Most other sectors retreated, with communications services and consumer staples among the larger decliners.
Oil was the primary market driver, with investors parsing the prospect of an escalation in hostilities between the U.S. and Iran and the potential impacts on supply. Brent crude advanced 2.7% to roughly $90.87 a barrel on Monday, reflecting concerns about disruptions to key shipping routes.
Tensions intensified after President Donald Trump threatened military action against Oman if it interfered with U.S. efforts to reach a deal with Iran, a development that heightened uncertainty around the Strait of Hormuz, a vital corridor for global oil shipments. Iranian media also reported that Iran had seized a UAE-owned oil tanker.
The jump in crude coincided with higher U.S. Treasury yields. The 30-year yield closed at 5.31%, marking its highest level in nearly two decades. Market participants noted that elevated energy costs have increased worries that a resurgence in inflation could complicate the Federal Reserve's policy outlook.
Investors headed into a busy corporate week, concentrating on retail earnings that could offer additional insight into consumer health. Walmart Inc (WMT), Home Depot Inc (HD) and Target Corporation (TGT) are among the retailers scheduled to report results, which traders and analysts expect to shed light on spending trends after softer-than-anticipated July retail sales and employment figures.
Attention will also turn to the Federal Reserve's meeting minutes due Wednesday for indications of the deliberations on interest-rate policy. At its July 28-29 meeting, the central bank opted to keep its benchmark rate unchanged at 3.50%-3.75%, though the decision was not unanimous - three policymakers dissented in favor of raising rates.
Market context
- Equity futures were steady in after-hours trade even after major indexes closed lower during the regular session.
- Energy led sector gains as oil prices rose, while communications services and consumer staples were among the laggards.
- Rising crude coincided with higher long-term Treasury yields, reinforcing concerns about inflation and central bank policy.
Given the mix of geopolitical risk, commodity moves and upcoming corporate reports and Fed minutes, market participants remain attentive to developments that could shift inflation expectations, interest-rate prospects and equity sector leadership.