U.S. equity futures were flat Monday morning, with market participants weighing recent advances in diplomatic negotiations over the Iran conflict and anticipating upcoming U.S. inflation data. Attention remains focused on these developments as investors assess their implications for Federal Reserve policy.
At 4:22 (Bangkok Time), Nasdaq 100 and Dow Jones Industrial Average futures each recorded modest gains at the start of the week, increasing by 0.09% and 0.03% respectively. Meanwhile, S&P 500 contracts edged down 0.10%, signaling a quiet session following Friday’s market closure for the holiday.
In oil trading, Brent crude for August delivery retreated 1.75% to $79.16 per barrel on Monday. U.S. West Texas Intermediate futures for July moved 0.52% higher at $77 per barrel.
Diplomatic efforts between the United States and Iran progressed over the weekend, according to mediators in Switzerland. Officials indicated both parties have sketched out a roadmap aiming to finalize a peace agreement within 60 days, reducing market anxiety after President Donald Trump’s recent threats of military action against Tehran unless it reins in Hezbollah’s activities targeting Israel.
This week, investors will closely monitor Thursday’s release of the May personal consumption expenditures price index (PCE), the inflation metric most closely monitored by the Federal Reserve. Economists surveyed by FactSet expect an uptick in core PCE—which strips out food and energy costs—from April levels.
The upcoming inflation figures arrive as traders continue to debate the Federal Reserve’s inclination to keep interest rates elevated, following a more hawkish policy stance signaled at its last meeting. The data are seen as a key indication of whether persistent price pressures could prompt another rate increase before year-end.
