US stock futures drifted lower early Monday, signaling a cautious tone at the start of a busy week for global markets.
Sentiment remained under pressure after US–Iran peace talks stalled, which pushed oil prices higher and added to lingering inflation concerns.
Investors are also approaching the session carefully ahead of a heavy slate of corporate earnings and key economic signals.
Geopolitical risks and interest rate expectations continue to shape near-term market direction.
5 things to know before Wall Street opens
1. Dow futures fell 0.14%, or 70 points, pointing to a modest pullback in blue-chip stocks at the open.
Futures tied to the S&P 500 slipped about 0.1%, reflecting a broadly cautious undertone across the market.
Meanwhile, Nasdaq-100 futures were last seen hovering near the flatline, suggesting a more mixed and tentative setup for technology shares.
2.Oil prices jumped sharply on Monday after the breakdown in US–Iran talks, with both global benchmarks climbing close to 3%.
Brent crude rose to around $108 a barrel, while West Texas Intermediate moved near $97, as supply concerns intensified.
The rally has been driven by severe disruptions in the Strait of Hormuz, where an estimated 10–13 million barrels per day are effectively being held back from global markets.
The developments have tightened the supply and reinforced upward pressure on prices.
3. Shares of Meta Platforms will stay in focus after China moved to block the company’s roughly $2 billion acquisition of AI startup Manus.
The development comes as a setback to its aggressive push into advanced artificial intelligence.
The decision, driven by concerns over cross-border technology transfer and national security, underscores rising regulatory friction in the global AI race.
For investors, the development adds a fresh layer of geopolitical risk to Meta’s AI strategy, which has been central to its long-term growth narrative.
4. US Treasury yields moved higher ahead of a pivotal week for monetary policy, as investors positioned for fresh signals from the Federal Reserve.
Markets are broadly expecting the central bank to keep rates unchanged, but the focus is firmly on Chair Jerome Powell and his stance.
Persistent inflation concerns, coupled with geopolitical tensions, have kept pressure on yields upward as tightening financial conditions add to the cautious tone across global markets.
5. Global markets largely remained subdued at the start of the week.
STOXX Europe 600 is hovering near flat levels after recent losses, as investors weighed the fallout from stalled US–Iran talks and a fresh surge in oil prices.
Regional benchmarks such as Germany’s DAX and France’s CAC 40 saw modest gains, while the UK’s FTSE 100 remained mixed.
Asian markets offered a mixed picture at the start of the week, with Japan’s Nikkei 225 climbing to fresh record highs.
In contrast, China and Hong Kong lagged, with the Hang Seng Index under pressure amid domestic concerns.
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