U.S. stock futures started Monday slightly higher as investors balanced fresh hopes for a deal involving the Strait of Hormuz with ongoing uncertainty over tensions between the United States and Iran. Futures tied to the S&P 500 gained 0.12%, while Nasdaq-100 futures rose 0.38%. Dow Jones futures hovered just below flat as traders waited for new developments that could influence global markets.
The Strait of Hormuz remained a major focus for investors because of its importance to global energy supplies. Iran has indicated that it is getting closer to an agreement with Oman that could help reopen the crucial shipping route, but Tehran has continued to resist direct talks with Washington. Oil prices reflected the uncertainty, with WTI crude rising more than 1% early Monday as markets remained cautious about the possibility of disruptions to energy supplies.
Wall Street is also entering the week with strong momentum after the three major U.S. indexes recorded their best weekly performances since April. The S&P 500 ended Friday at a record closing level after weaker-than-expected July employment figures boosted expectations that the Federal Reserve could take a more cautious approach to interest rates. Markets are now pricing in a lower chance of a September rate hike compared with the previous week.
Attention will now turn to inflation, with investors preparing for the latest consumer and producer price reports due later this week. The figures could provide important clues about the direction of U.S. interest rates and whether the recent slowdown in employment will influence the Federal Reserve’s next decision. Traders will also keep an eye on corporate earnings from companies including On Holding, Cava Group, Super Micro and CoreWeave.
Global markets were broadly positive at the start of the week, although investors remained alert to developments in the Middle East. Japan’s Nikkei 225 climbed 2.1%, while Hong Kong’s Hang Seng gained 1% and South Korea’s Kospi advanced 0.65%. European markets were more subdued, with London’s FTSE 100 slightly lower, France’s CAC 40 flat and Germany’s DAX edging higher as traders assessed the uncertainty surrounding the Strait of Hormuz and its potential impact on the global economy
source: cnbc
