US stock futures traded in the green as investors reacted to signs of progress in US-Iran peace talks and prepared for an important inflation report later this week. S&P 500 futures edged slightly above the flat line. Dow Jones futures gained around 0.2%. Nasdaq 100 futures rose about 0.3%. Markets were expected to open quietly after Wall Street remained closed on Friday for a holiday.
Iran peace talks
Iran said there had been “encouraging progress” in talks with the United States taking place in Switzerland. Officials from both countries reportedly agreed on a roadmap aimed at reaching a final deal within 60 days, as per Yahoo Finance. The update eased some investor concerns about possible military conflict in the Middle East. Markets had been worried after President Donald Trump warned that the US could strike Iran if Tehran failed to control Hezbollah’s actions against Israel.
Oil prices fell
Oil prices declined as traders weighed Trump’s warnings against hopes for a peace agreement. Investors believe successful negotiations could help normalize oil shipments through the Strait of Hormuz. Brent crude futures dropped about 1% and traded just above $78 per barrel. West Texas Intermediate crude slipped slightly and traded near $75 per barrel. Lower oil prices generally help reduce inflation concerns and support stock markets.
AI demand remains a major market focus
Investors continued to watch developments in the artificial intelligence sector. South Korean memory chip maker SK Hynix overtook Samsung to become South Korea’s most valuable listed company, as noted by Yahoo Finance. The shift highlights strong investor confidence in companies benefiting from AI-related demand. Memory chips are a critical part of AI servers and data centers.
AbbVie major acquisition
Drugmaker AbbVie agreed to acquire Apogee Therapeutics for $10.9 billion in cash. The deal is aimed at expanding AbbVie’s immunology business. AbbVie offered $135.11 per share for Apogee. The offer represented a 49% premium compared with Apogee’s closing stock price on Thursday, as cited by Yahoo Finance. AbbVie shares rose around 1% after the announcement. Apogee shares surged roughly 47%. Investors viewed the acquisition as a major growth move for AbbVie.
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Inflation report
The biggest economic event this week is the release of May’s Personal Consumption Expenditures (PCE) Price Index on Thursday. Investors will closely watch whether inflation remains stubbornly high. The report could influence future interest-rate decisions by the Federal Reserve.
Treasury yields moved higher
US Treasury prices fell while yields rose on Monday, according to Bloomberg. Investors reassessed inflation risks after President Trump renewed military threats toward Iran. Rising geopolitical tensions initially pushed oil prices higher earlier in the day. Higher oil prices can increase inflation by raising energy costs across the economy.
Bond market reaction
Bond investors worried that higher energy prices could make it harder for the Federal Reserve to bring inflation under control. US and Iranian officials continued talks in Switzerland aimed at securing a longer-lasting peace agreement, as noted by Bloomberg. Trump warned that the US could take military action if Iran does not stop Hezbollah-linked activities. He also suggested the US could impose tolls or penalties if negotiations fail.
