US Futures Edge Lower

US equity futures hovered marginally below the flatline on Monday as markets continued to assess risks around high energy prices and whether there is room for the AI rally to continue. The three main indices were slightly lower, with the S&P 500 and the Nasdaq 100 having reached records last session. US President Trump condemned Iran's counteroffer on a peace agreement as unacceptable, extending their conflict that prevents tanker and vessel flows from the Persian Gulf. Despite the resulting increase in energy prices and bond yields, equities remained near their record highs following their recent earnings-fueled rally. AI Hyperscalers and chip producers were lower pre-market after surging last week. The latest spotlight was on Amazon and Alphabet, both trading below the flatline after tapping foreign credit markets in their latest financing for AI spending.

US stock futures edged lower on Monday as uncertainty surrounding the Middle East conflict intensified after President Donald Trump described Iran’s response to his peace proposal as “TOTALLY UNACCEPTABLE.” The Strait of Hormuz remains effectively closed as Washington and Tehran continue to struggle toward a diplomatic resolution, keeping energy prices elevated and fueling concerns about inflation. Investors are also awaiting April US inflation data for further signs of how rising oil prices are feeding into broader price pressures across the economy. On the corporate side, earnings reports due this week include results from Constellation Energy, Fox Corporation, Barrick Mining, Applied Materials, and Ross Stores, among others. Last week, the S&P 500 and Nasdaq Composite advanced 2.33% and 4.51%, respectively, with both indexes reaching fresh record highs, supported by solid corporate earnings and continued momentum in technology shares.

The Dow Jones Index gained 12 points or 0.02 percent on Friday to close at 49609 points. Gains were led by Cisco Systems (4.77%), Boeing (2.97%) and UnitedHealth (2.67%). Biggest losers were Salesforce (-3.02%), McDonalds (-2.80%) and Home Depot (-1.51%).