US Futures Flat After Lackluster Session

US stock futures were little changed on Tuesday after the major averages started the week on a sour note, as persistent uncertainty over a US-Iran deal and expectations for tighter monetary policy weighed on sentiment. In regular trading on Monday, the Dow fell 0.11%, while the S&P 500 and Nasdaq Composite declined 0.06% and 0.32%, respectively. Oil prices rallied sharply as uncertainty surrounding the Middle East conflict continued to weigh on markets, pushing Treasury yields higher and raising concerns that the Federal Reserve may need to raise interest rates soon despite signs of a cooling labor market. Investors now await key inflation data due this week for further clues on the monetary policy outlook. On the corporate front, earnings are due today from Cardinal Health, CoreWeave and Super Micro Computer, among others.

The Dow Jones Index decreased 61 points or 0.11 percent on Monday to close at 53976 points. The decline was led by Nvidia (-2.79%), Travelers Companies (-2.21%) and Sherwin-Williams (-1.96%). On the upside, the strongest performers were Chevron (4.38%), Salesforce (2.71%) and Merck (1.71%).

The S&P 500 lost 0.1%, the Nasdaq retreated 0.3%, and the Dow shed 61 points on Monday as markets assessed the outlook for interest rates this year amid growing doubts that a lasting resolution to the conflict with Iran is near. A rally in oil prices pushed bond yields higher on concerns over energy-driven inflation. Higher energy costs raised fears that the Fed may need to raise rates this year despite a cooling labor market. Credit-sensitive stocks were mixed, with financials mostly lower. Visa shed 0.3%, Amex lost 0.6%, and Morgan Stanley fell 0.5%. Chipmakers tumbled, with Nvidia down 2.9% amid reports that Wall Street giants are working with the company on a $500 billion AI funding package. Intel fell 4.1% as it prepares to offer $15 billion in stock. Apple also declined 1.5% after Jefferies downgraded the stock to underperform. Meanwhile, hyperscalers mostly gained after brokers signaled strong demand for cloud services, with Microsoft up 1.2% and SpaceX advancing 4.2%.