Stock market today: Dow, S&P 500, Nasdaq futures waver as US, Iran reach impasse
Key Takeaways
- •US stock futures were little changed, with Dow futures trading flat while S&P 500 and Nasdaq-100 futures posted modest premarket gains.
- •President Trump rejected Iran's demand for war reparations and indicated he would wait for economic pressure to intensify, while Iran's foreign minister ruled out restarting negotiations under current conditions.
- •Brent crude futures hovered around $87 per barrel after trimming earlier gains, with markets watching for any disruption to crude supplies through the Strait of Hormuz.
- •Weaker-than-expected jobs data has shifted market expectations toward a Federal Reserve rate hike in September, and a Cleveland Fed official suggested more than one hike may be necessary.
- •Earnings reports from CoreWeave and Super Micro Computer are expected to provide insight into AI-related demand for chips and infrastructure amid fundraising efforts by Intel and Nvidia.
US stock futures were little changed as the standoff between the US and Iran deepened, keeping traders focused on whether diplomacy can ease pressure on shipping routes and energy markets.
Futures on the Dow Jones Industrial Average (YM=F) traded roughly flat, while S&P 500 futures (ES=F) rose 0.1%. Nasdaq-100 futures (NQ=F) gained 0.3% in premarket trading after stocks ended lower on Monday.
Persistent geopolitical tensions and increasingly firm demands over war compensation weighed on equities. On Sunday, President Trump rejected Iran's demand for reparations and said he would wait for economic pressure to intensify. "We are only semi-negotiating with them," Trump told Axios. Iranian foreign minister Abbas Araghchi also dampened hopes for talks, saying there was "no possibility of restarting negotiations" under current conditions.
Oil prices trimmed earlier gains overnight after Pakistan's defense minister Khawaja Asif told reporters that the US and Iran were "close to some sort of arrangement." Brent crude futures (BZ=F), the global benchmark, hovered around $87 per barrel. With the Strait of Hormuz still central to the dispute, markets are watching for any sign that the impasse eases pressure on crude supplies, which can quickly feed into broader inflation readings.
Still-elevated oil prices and the uncertain outlook for ending the war have increased attention on Wednesday's Consumer Price Index (CPI) report. After Friday's weaker-than-expected jobs data, markets have shifted toward expectations for a Federal Reserve rate hike in September. Cleveland Federal Reserve President Beth Hammack told Yahoo Finance on Monday that it may take more than one rate hike to bring inflation under control.
At the same time, new fundraising efforts by Intel (INTC), Nvidia (NVDA), and others are renewing scrutiny of the capital-intensive AI build-out. That backdrop makes earnings from cloud computing company CoreWeave (CRWV) and AI server maker Super Micro Computer (SMCI) after the bell a timely read on demand for chips, servers, and the infrastructure tied to AI spending.
