Market Overview
U.S. stock index futures were little changed on Sunday night as investors reacted to renewed doubts over the reopening of the Strait of Hormuz. S&P 500 futures slipped 0.1% to 7,775.50 points, Dow Jones futures fell 0.1% to 54,076.0 points, and Nasdaq 100 futures were largely muted at 29,837.75 points as of 21:24 ET (01:24 GMT).
Hormuz Situation
Iranian Foreign Minister Abbas Araqchi said on Sunday that an agreement with Oman to create new shipping lanes through the strait is in its final stages, but the deal alone will not reopen Hormuz. Tehran is demanding U.S. compensation, an end to military threats and sanctions, and the lifting of a naval blockade before commercial traffic can resume. A Reuters report citing a U.S. official indicated Washington expects an Iran‑Oman deal soon and would lift its blockade of Iranian ports once shipping can resume without impediments.
Oil and Inflation Implications
Higher oil prices extended gains in Asian trading on Monday, raising concerns that rising crude costs could add to inflation pressures and complicate the Federal Reserve’s policy outlook.
Recent U.S. Economic Data
U.S. labor market data released on Friday showed the economy lost 23,000 jobs in July, sharply missing expectations for an 80,000‑job gain. The weaker jobs report reduced expectations of an imminent Fed rate hike and helped push Treasury yields lower. On the same day, the Dow Jones Industrial Average rose 0.3%, the S&P 500 gained 0.6% to a record close, and the Nasdaq Composite advanced 1.3%. For the week, the S&P 500 jumped 3.6%, the Nasdaq surged 5.2%, and the Dow climbed 3%.
Upcoming Data and Earnings Watch
Investor attention now shifts to the July consumer inflation report due on Wednesday. Market participants will also monitor earnings from Applied Materials Inc (NASDAQ:AMAT), Cisco Systems Inc (NASDAQ:CSCO) and CoreWeave Inc (NASDAQ:CRWV). Nearly 90% of S&P 500 constituents have reported quarterly results, with 76% beating earnings expectations.