U.S. equity futures suggest a subdued opening on Monday, with markets expected to tread water after the strong rebound seen at the end of last week.
Investor sentiment remains cautious, as uncertainty lingers in the Middle East following the breakdown of U.S.-Iran negotiations over the weekend.
With talks between Washington and Tehran entering a more uncertain phase, reports indicate that Iran has proposed reopening the Strait of Hormuz and ending the conflict, while postponing discussions over its nuclear programme.
Attention is likely to shift toward corporate earnings in the days ahead, with five members of the “Magnificent Seven” set to release quarterly results this week.
Markets are also closely watching the Federal Reserve’s policy decision due on Wednesday. While rates are widely expected to remain unchanged, the Fed’s accompanying statement may offer insight into the future direction of monetary policy.
After a weaker showing on Thursday, stocks rebounded on Friday, with the Nasdaq and S&P 500 both recovering losses and finishing at record closing highs.
The Nasdaq led the gains, rising 398.09 points, or 1.6%, to 24,836.60, while the S&P 500 added 56.68 points, or 0.8%, to 7,165.08.
The Dow Jones Industrial Average, however, moved lower, slipping 79.61 points, or 0.2%, to 49,230.71, dragged down by declines in Merck & Co. (NYSE:MRK) and Verizon Communications Inc. (NYSE:VZ).
On a weekly basis, the Nasdaq gained 1.5% and the S&P 500 rose 0.6%, while the Dow posted a 0.4% loss.
The broader market recovery was helped by a sharp rally in Intel Corporation (INTEL:INTC), which surged more than 23% to a record closing high.
Intel’s jump came after the chipmaker reported first-quarter earnings that exceeded expectations and issued second-quarter revenue guidance above analyst forecasts.
Procter & Gamble (NYSE:PG) also advanced notably after delivering stronger-than-expected fiscal third-quarter results.
Investor sentiment was further supported by a pullback in oil prices, which had surged in recent sessions.
U.S. crude futures dropped more than 1% following a Reuters report that Iranian Foreign Minister Abbas Araqchi was set to travel to Pakistan for talks with the United States.
Araqchi stated on X that the visit would focus on bilateral issues and regional developments, without providing additional details.
According to CNN, U.S. envoy Steve Witkoff and Jared Kushner are expected to represent the United States, with Vice President JD Vance stepping in if needed.
Meanwhile, Donald Trump’s decision to extend the ceasefire between Israel and Lebanon by three weeks also contributed to easing pressure on oil prices.
Semiconductor stocks rallied alongside Intel, with the Philadelphia Semiconductor Index climbing 4.3% to a record close.
Gold-related shares also moved higher as bullion prices increased, pushing the NYSE Arca Gold Bugs Index up 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.
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