U.S. stock futures moved lower ahead of Tuesday’s opening bell, with investors turning cautious after Wall Street ended Monday’s volatile trading session slightly in positive territory.
The renewed weakness in futures comes as oil prices continue to climb sharply, raising concerns that tensions in the Middle East could intensify again and weigh on global growth and inflation expectations.
U.S. crude futures were up more than 3% on Tuesday after already surging 2.8% during the previous session.
The latest gains in oil prices reflect ongoing uncertainty surrounding negotiations between the United States and Iran, as both sides continue to struggle to reach an agreement aimed at ending the conflict and reopening the strategically important Strait of Hormuz.
President Donald Trump told reporters late Monday that the ceasefire between Washington and Tehran was on “life support,” describing the truce as “unbelievably weak.”
Inflation Data Offers Partial Relief to Investors
Despite the pressure from rising energy prices, futures recovered part of their earlier losses following the release of U.S. inflation data.
According to the Labor Department, consumer prices increased in April broadly in line with economist forecasts.
Monthly consumer price growth slowed to 0.6% in April from 0.9% in March, easing some fears that inflationary pressures could accelerate more sharply due to rising oil costs.
Investors appeared relieved that the inflation figures did not exceed expectations.
Wall Street Ends Mixed Session at Record Highs
Stocks struggled for direction throughout Monday’s trading session after the strong gains recorded last week.
Major indexes moved repeatedly above and below the flatline before ultimately closing modestly higher.
The Dow Jones Industrial Average gained 95.31 points, or 0.2%, to close at 49,704.47. The Nasdaq Composite added 27.05 points, or 0.1%, ending at 26,274.13, while the S&P 500 rose 13.91 points, or 0.2%, to 7,412.84.
Despite the subdued performance, both the Nasdaq and the S&P 500 finished the day at fresh record closing highs.
Traders Remain Focused on Middle East Risks and Oil Prices
The uneven trading environment reflected ongoing uncertainty about the near-term direction of financial markets following the recent rally.
Although broader sentiment remains relatively constructive, investors continue to monitor developments in the Middle East closely.
Oil prices remained a major focus after crude futures climbed more than 2% on Monday.
The rally accelerated after Trump rejected Iran’s latest response to a U.S. peace proposal, calling it “totally unacceptable” in a post published on Truth Social.
According to Iranian state media, Tehran’s counterproposal included demands for compensation related to war damages and recognition of Iran’s sovereignty over the Strait of Hormuz.
Even so, recent corporate earnings strength has helped U.S. equities remain relatively resilient despite geopolitical tensions.
Gold, Energy and Semiconductor Stocks Advance
Gold-related stocks posted strong gains as gold prices moved moderately higher.
The NYSE Arca Gold Bugs Index jumped 3.7% during Monday’s session.
Energy stocks also rallied alongside crude prices, with the Philadelphia Oil Service Index climbing 2.6%.
Semiconductor, oil services and networking shares also recorded notable gains.
Airline and Retail Stocks Lag
Airline stocks came under heavy pressure as higher oil prices raised concerns about fuel costs across the sector.
The NYSE Arca Airline Index dropped 3.1%.
Retail, housing and banking stocks also traded lower, partially offsetting gains in energy, technology and commodity-linked sectors.