U.S. Stock Futures Steady as Iran Tensions Stall Progress, Oil Prices Rise
Market Overview and Key Drivers
Wall Street Futures and Oil Price Movements
May 11 (Reuters) - Wall Street futures were subdued on Monday, taking a breather after a record rally last week, as investors fretted over signs of stalled talks between the United States and Iran that pushed oil prices higher.
U.S. President Donald Trump's swift rejection of Iran's response to a U.S. peace proposal sent crude surging almost 3%, stoking worries that the 10-week-old conflict could drag on and keep shipping through the Strait of Hormuz paralyzed.
Recent Stock Market Performance
U.S. stocks touched fresh peaks last week, with the S&P 500 and the Nasdaq both closing at record highs on Friday, buoyed by upbeat corporate earnings, a solid monthly payrolls report and neither U.S. not Iran seeking escalation in the war.
At 05:44 a.m. ET, Dow E-minis were up 9 points, or 0.02%, S&P 500 E-minis were up 0.25 points, or 0%, and Nasdaq 100 E-minis were up 8.25 points, or 0.03%.
Upcoming Economic Data and Events
Inflation and Consumer Price Index
Investors will now look to Tuesday's consumer price index data, which is expected to show inflation ticked higher in April as the Middle East conflict puts upward pressure on energy prices.
While the U.S.' status as a net oil exporter is expected to provide some buffer, concerns about the conflict's impact on consumer demand and companies still linger. Producer prices and monthly retail sales figures are also due later in the week.
U.S.-China Relations and Global Diplomacy
Also on the radar is a meeting between Trump and Chinese President Xi Jinping later this week, when the two leaders are set to discuss Iran, Taiwan, artificial intelligence and nuclear weapons, while also weighing an extension of a critical minerals deal, according to U.S. officials previewing Trump's two-day visit to China this week.
Corporate Earnings and Sector Movements
First-Quarter Reporting Season
The first-quarter reporting season will soon start winding down, after a much stronger-than-expected performance from companies, particularly in the technology sector, helped push stocks to new highs.
Major names this week include tech networking giant Cisco and semiconductor equipment maker Applied Materials, while heavyweight names Nvidia and Walmart are due to report later in the month.
Sector Performance
Airlines
Among Monday's movers, some airline stocks slipped in premarket trading as rising oil prices threatened to squeeze margins. Southwest Airlines, Delta Air Lines and United Airlines fell between 0.6% and 1.3%.
Gold Miners
U.S.-listed shares of gold miners slipped as bullion prices declined 1%. Newmont slipped 1.8%, Sibanye Stillwater lost 2.4% and Harmony Gold shed 2.2%.
(Reporting by Ragini Mathur in Bengaluru; Editing by Devika Syamnath)
