U.S. stocks could begin Monday’s session with limited direction, with major index futures pointing to a broadly flat open following Friday’s modest retreat.
Technology shares may provide some support after Bloomberg reported that Anthropic (NASDAQ:ANTP) told prospective investors its second-quarter revenue increased by at least 14 times compared with the same period last year.
Documents reviewed by Bloomberg reportedly showed preliminary quarterly revenue exceeding $11.5 billion for the Claude chatbot developer, compared with $787 million in the second quarter of 2025.
Market direction clouded by economic and geopolitical risks
Broader trading activity could remain subdued as investors weigh conflicting signals surrounding the near-term outlook.
Recent U.S. economic figures have reduced expectations that the Federal Reserve will raise interest rates next month. However, persistently elevated crude prices continue to present an inflationary and economic risk as the U.S.-Iran conflict remains unresolved.
U.S. crude futures climbed 0.7% to $83 a barrel after President Donald Trump threatened to bomb Oman during an interview with Fox News.
The comments came as Iran and Oman appeared to be making progress towards an understanding over the management of the Strait of Hormuz, a critical route for global energy supplies.
Wall Street retreats from record territory
U.S. equities finished modestly lower on Friday after advancing during most of the previous two sessions, although selling pressure remained relatively contained.
The Dow Jones Industrial Average declined 107.58 points, or 0.2%, to 53,732.41. The Nasdaq dropped 73.86 points, or 0.3%, to 26,729.16, while the S&P 500 fell 13.23 points, or 0.2%, to 7,785.76.
Performance across the week was mixed. The Dow lost 0.6%, while the Nasdaq gained 0.1% and the S&P 500 advanced 0.4%.
Friday’s decline may have partly reflected profit-taking after the S&P 500 climbed above 7,800 to reach a record intraday level on Thursday.
The benchmark also recorded an all-time closing high that day, while the technology-heavy Nasdaq finished at its strongest closing level in more than two months.
Consumer sentiment and retail sales disappoint
Investors also reacted to signs of weakening U.S. consumer conditions.
The University of Michigan’s consumer sentiment index dropped sharply to 51.0 in August from 55.2 in July. Economists had expected a more modest decline to 54.2.
Separate Commerce Department figures showed retail sales unexpectedly contracted 0.6% in July following a 0.2% increase in June. Economists had forecast growth of 0.1%.
The July decline represented the first fall in retail sales since a 0.2% contraction in October 2025.
Although the weaker economic figures have further reduced concerns about an imminent Federal Reserve rate increase, they have also raised questions about the resilience of the U.S. economy, particularly with elevated energy prices adding pressure on consumers and businesses.
Oil and gold stocks outperform broader market
Crude prices rebounded on Friday after Trump administration officials indicated that economic measures could be used to pressure Iran into reopening the Strait of Hormuz, increasing concerns that the dispute could remain unresolved for an extended period.
Energy-related stocks benefited from the move. The Philadelphia Oil Service Index climbed 2.6%, reaching its strongest closing level in well over two months.
Gold producers also rallied as bullion prices increased, sending the NYSE Arca Gold Bugs Index up 2.2%.
Computer hardware shares recorded notable gains as well, while airlines, software companies and pharmaceutical stocks were among the weaker areas of the market.
Investors heading into Monday’s session therefore face a mixed backdrop, with softer economic data reducing expectations for higher interest rates while simultaneously raising concerns about growth, and continuing geopolitical tensions keeping energy prices elevated.
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