U.S. stock futures slipped as investors considered the latest updates in artificial intelligence and ongoing uncertainty in Iran negotiations.
Futures for the Dow Jones Industrial Average and S&P 500 both dropped by 0.2%, while the Nasdaq 100 Index, which is more heavily weighted with tech stocks, saw a slightly larger decline of 0.3%.
The shares of Alphabet experienced a slight decrease after the market closed. The company announced plans to raise $80 billion to further its AI infrastructure. On the other hand, Hewlett Packard Enterprise reported record earnings thanks to its AI data center expansion, leading to a substantial stock increase of over 20%.
Stocks reached record highs during the day when President Trump made comments about a potential breakdown in U.S.-Iran negotiations, coupled with news that Israel and Hezbollah agreed to a ceasefire. Moments later, the President remarked that talks with Iran were progressing “rapidly.”
On Tuesday, investors will get a clearer picture of the economy with the release of the Job Openings and Labor Turnover Survey (JOLTS) report. This report is the first in a series of employment updates this week, concluding with May’s jobs report on Friday. There’s a keen eye on the signs of economic strain, especially as rising prices might complicate the Federal Reserve’s decisions on interest rates.
Earnings season is wrapping up this week, and companies like Palo Alto Networks, Dollar General, Ulta Beauty, and Victoria’s Secret are set to reveal their financial results on Tuesday.
- Crude oil stabilizes after May’s largest increase, driven by U.S. and Iranian instability
Bloomberg reports:
Oil prices firmed, marking the biggest rise in nearly a month. There’s growing uncertainty regarding U.S.-Iranian peace talks, which could impact energy flows from the Persian Gulf for an extended period. West Texas Intermediate was trading close to $92 per barrel after a gain of over 5% in the prior session, while Brent settled just below $95. Prices had surged on Monday following reports that Iran was halting talks with the U.S. over Israeli actions in Lebanon, but dipped after Trump indicated that discussions were still ongoing.
In a conversation with ABC News, the President mentioned that a memorandum of understanding regarding the Strait of Hormuz could be signed within a week, although he noted that the U.S. still “needs to score a few more points” before finalizing a deal.
Concerns over prolonging the current ceasefire and the future of energy transport through the Strait of Hormuz have negatively impacted oil prices, which had fallen last month due to optimistic expectations for a deal. Reports from Iran’s semi-official Tasnim news agency suggested discussions about potentially closing the Strait of Hormuz and Bab el-Mandeb Strait—crucial routes for oil exports.
