U.S. stock futures indicate a largely unchanged open on Monday, pointing to a pause in momentum after the strong gains recorded in the previous session.
Investors appear cautious, with limited conviction as uncertainty persists in the Middle East following the breakdown of U.S.-Iran peace discussions over the weekend.
As negotiations between Washington and Tehran enter another uncertain phase, reports have indicated that Iran has floated a proposal to reopen the Strait of Hormuz and bring the conflict to an end, while delaying talks over its nuclear programme.
Attention is expected to shift toward corporate earnings in the days ahead, with five of the so-called “Magnificent Seven” companies scheduled to release quarterly results this week.
Market participants are also awaiting the Federal Reserve’s policy announcement on Wednesday. While the central bank is broadly expected to leave interest rates unchanged, investors will be closely analysing the accompanying statement for signals on the future path of policy.
Following a weaker performance on Thursday, equities rebounded on Friday. Both the Nasdaq and S&P 500 erased prior losses and closed at fresh record highs.
The tech-heavy Nasdaq led the advance, climbing 398.09 points, or 1.6%, to 24,836.60, while the S&P 500 gained 56.68 points, or 0.8%, to 7,165.08.
In contrast, the Dow Jones Industrial Average moved lower, slipping 79.61 points, or 0.2%, to 49,230.71, weighed down by notable declines in Merck & Co. (NYSE:MRK) and Verizon Communications Inc. (NYSE:VZ).
For the week overall, the Nasdaq advanced 1.5% and the S&P 500 rose 0.6%, while the Dow posted a 0.4% decline.
The broader market rebound was supported in part by a sharp rally in Intel Corporation (INTEL:INTC), which surged more than 23% to a record closing high.
Intel’s gains followed better-than-expected first-quarter earnings and a second-quarter revenue outlook that exceeded analyst forecasts.
Procter & Gamble (NYSE:PG) also posted strong gains after delivering fiscal third-quarter results ahead of expectations.
Investor sentiment was further lifted by a pullback in oil prices, which had surged in recent sessions.
U.S. crude futures declined by more than 1% after a Reuters report said Iranian Foreign Minister Abbas Araqchi was set to arrive in Pakistan for discussions with the U.S.
Araqchi said via X that the trip would focus on bilateral issues and regional developments, without providing further details.
According to CNN, U.S. Special Envoy Steve Witkoff and Jared Kushner are expected to represent the United States, with Vice President JD Vance stepping in if necessary.
Meanwhile, Donald Trump’s decision to extend the ceasefire between Israel and Lebanon by three weeks also contributed to easing oil prices.
Semiconductor stocks rallied strongly alongside Intel, with the Philadelphia Semiconductor Index jumping 4.3% to a record close.
Gold-related shares also advanced as bullion prices increased, pushing the NYSE Arca Gold Bugs Index up by 2.3%.
Software stocks rebounded after Thursday’s decline, with the Dow Jones U.S. Software Index rising 2.1%.
Oil services and computer hardware sectors also posted gains, while telecom, pharmaceutical and banking stocks came under pressure.