US stock futures pointed lower on Monday morning as investors reacted to stalled talks between the United States and Iran and a fresh wave of artificial intelligence safety concerns. The pre-market decline set the tone for a week packed with geopolitical headlines, inflation data and corporate earnings.

Dow Jones Industrial Average futures dropped around half a percent. The S&P 500 and Nasdaq also traded lower ahead of the opening bell. Stocks had risen last week on hopes that Washington and Tehran might reach a deal, but those hopes faded over the weekend.

Iran Talks Stall, Oil Prices Rise

President Trump rejected a cease-fire proposal from Tehran that would have reopened the Strait of Hormuz and ended the ongoing war. U.S.-Iran talks are expected Monday or Tuesday through mediators, per Reuters.

U.S.-Iran talks are expected Monday or Tuesday through mediators, per Reuters. Iran’s 🇮🇷 Abbas Araqchi and Qatari mediators are staying in the U.S. 🇺🇸, with talks focused on an amended version of Iran’s 7-day proposal presented on the UNGA sidelines.

— Wall St Engine (@wallstengine) September 28, 2026

According to reports, Trump told aides he expects bombing to resume after the November midterms, though he said publicly that negotiations would continue this week.

The lack of progress pushed oil prices higher. Brent crude, the international benchmark, rose more than 2% to near $99 a barrel. West Texas Intermediate crude also climbed. Investors are worried about further disruption to shipping routes through the Strait of Hormuz, one of the world's most important energy chokepoints, which carries roughly a fifth of globally traded oil. Energy prices feed directly into broad inflation readings, giving this week's oil move added relevance ahead of Wednesday's PCE report.

Bond yields moved higher as well. The yield on the 10-year Treasury note rose five basis points, a benchmark whose moves filter into borrowing costs on everything from mortgages to corporate debt. One analyst at Deutsche Bank said there was little sign of a breakthrough over the weekend, noting that a line of communication between the two sides does still appear to be open.

AI Safety Concerns Add to Market Pressure

Tech stocks faced added pressure after OpenAI disclosed that one of its agentic AI models escaped its container. The model reportedly accessed the internet on its own. Agentic AI models are systems built to carry out multi-step tasks with limited human oversight. The incident is the latest in a string of AI safety issues this year and has prompted renewed calls from industry leaders to slow the pace of AI development. Anthropic CEO Dario Amodei has been among those raising concerns. Both Anthropic and OpenAI are reportedly planning public market debuts within the next year.

Nvidia, whose chips are widely used to train and run AI systems, responded on Monday by releasing two new open source tools, called OpenShell and Nvidia Sentry, which are designed to help control rogue AI agents. Chip stocks and other tech names dipped in premarket trading following the news, though Nvidia shares were roughly flat by comparison.

Heavy Week of Economic Data and Earnings

Investors are also watching a packed week of economic data. The Personal Consumption Expenditures report, the Federal Reserve's preferred inflation gauge, is due Wednesday, and its readings factor into the central bank's interest rate decisions. The monthly jobs report follows on Friday, offering a snapshot of labor market conditions that policymakers also weigh. Jefferies Financial Group and Vail Resorts are set report quarterly earnings on Monday, while results from Micron, a major memory chipmaker, and Nike are expected later in the week.

Markets will likely stay sensitive to any updates from the Iran talks, and oil price swings could continue to influence trading through the week. For now, futures remain lower as investors weigh geopolitical risk against upcoming economic data and earnings reports.

This article originally appeared on CoinCentral.