U.S. stock futures rose as investors reacted to signs of progress in U.S.-Iran peace talks and prepared for a key inflation report later this week. S&P 500 futures were slightly above flat. Dow Jones futures were up about 0.2%. Nasdaq 100 futures rose about 0.3%. Markets were expected to open quietly after Wall Street was closed for the holiday on Friday.
Iran peace talks
Iran said talks with the United States in Switzerland had made “encouraging progress”. According to Yahoo Finance, officials from both countries agreed to develop a road map aimed at reaching a final agreement within 60 days. The latest news eased some investors’ concerns about possible military conflict in the Middle East. The market has been worried since then president donald trump It warned that the United States could attack Iran if Tehran failed to rein in Hezbollah’s actions against Israel.
Oil prices fall
oil price Stocks fell as traders weighed Trump’s warnings against hopes for a peace deal. Investors believe successful negotiations could help normalize oil shipments in the Strait of Hormuz. Brent crude futures fell about 1%, trading just above $78 a barrel. West Texas Intermediate crude oil edged lower, trading near $75 a barrel. Lower oil prices typically help reduce inflation concerns and support stocks.
Artificial intelligence demand remains the main focus of the market
Investors continue to monitor developments in the sector AI department. According to Yahoo Finance, South Korean memory chip manufacturer SK Hynix has surpassed Samsung to become South Korea’s most valuable listed company. The shift underscores strong investor confidence in companies benefiting from artificial intelligence-related demand. Memory chips are a key part of artificial intelligence servers and data centers.
AbbVie major acquisition
Drugmaker AbbVie has agreed to acquire Apogee Therapeutics for $10.9 billion in cash. The deal is intended to expand AbbVie’s immunology business. AbbVie offered $135.11 per share for Apogee. According to Yahoo Finance, the offer represents a 49% premium to Apogee’s closing price on Thursday. AbbVie shares rose about 1% after the news was announced. Apogee shares soared about 47%. Investors view the acquisition as a major growth move for AbbVie.
Also read: Cause of death of Alan Greenspan: How did the former Federal Reserve chairman die at the age of 100?
inflation report
The biggest economic event this week is Thursday’s release of the personal consumption expenditures (PCE) price index for May. Investors will be keeping a close eye on whether inflation remains elevated. The report could influence the Fed’s future interest rate decisions.
Treasury yields move higher
U.S. Treasury bond prices fell on Monday, while yields rose, Bloomberg reported. Investors reassessed inflation risks after President Trump renewed military threats against Iran. Rising geopolitical tensions initially pushed oil prices higher earlier in the day. Higher oil prices increase energy costs across the economy, fueling inflation.
bond market reaction
Bond investors worry that rising energy prices could make it harder for the Fed to control inflation. According to Bloomberg, U.S. and Iranian officials continue to hold talks in Switzerland aimed at reaching a more durable peace agreement. Trump warned that the United States could take military action if Iran did not cease its activities related to Hezbollah. He also suggested that the United States could impose tolls or fines if negotiations fail.
