US Futures Trade Muted

US stock futures were flat on Monday, holding the rebound from the last week on fresh optimism that peace in the Middle East would re-establish energy supply from the region. Contracts for the S&P 500, Nasdaq 100, and Dow were flat in the session to remain near their all-time highs. Iran stated there was major progress in the recent discussions with the US as both sides agreed to reach a peace deal within two months. Prices for energy commodities fell further on hopes of restored supply, although lingering expectations of a hawkish Fed following last week's meetings prevented support for Treasuries. Chip producers extended their historic rally from this year pre-market, contrasting with the recent lag for AI hyperscalers as their soaring levels of AI infrastructure investment sparked lingering skepticism on whether returns will be able to match outlays. Meanwhile, AbbVie added 1% after agreeing to buy Apogee Therapeutics in a $10.9 billion cash deal.

US stock futures moved lower on Monday as tensions flared during the first day of talks between the US and Iran, driving oil prices higher. President Donald Trump threatened fresh strikes if Hezbollah continues its attacks on Israel and warned Tehran against closing the Strait of Hormuz again. Meanwhile, Iranian media reported that Tehran had suspended negotiations in response to Trump's remarks, although sources familiar with the discussions said talks were still ongoing. Investors also turned their attention to this week's release of the US PCE price index, the Federal Reserve's preferred measure of inflation. Last week, the Fed left interest rates unchanged but signaled a more hawkish stance, with nearly half of FOMC members now expecting at least one rate increase before year-end. Despite this, US equities posted gains last week, led by the tech-heavy Nasdaq Composite, which rose 2.43%, while the S&P 500 and Dow advanced 0.93% and 0.71%, respectively.

The Dow Jones Index went up by 157 points or 0.31 percent on Thursday to close at 51650 points. The rise was led by Caterpillar (3.35%), Walt Disney (3.09%) and Nvidia (3.08%). On the downside, the weakerst performers were IBM (-4.80%), J&J (-2.50%) and JPMorgan (-2.47%).