US equity futures were mixed after the long weekend, as uncertainty surrounding the war in Iran and its implications for global energy markets kept investors risk-averse. Futures tied to the three major indices hovered near the flatline. Reports indicated that US allies were pushing for a last-minute agreement with Iran, potentially leading to a longer ceasefire, but Tehran’s retaliatory rhetoric, combined with President Trump’s threat of stepped-up attacks starting tomorrow, sustained the risk of further escalation in the region.
The conflict continued to disrupt crude and refined product supplies, with spot crude prices in Europe climbing to their highest levels since 2008 last week. This added to the Federal Reserve’s pro-inflationary policy outlook, which was already reinforced by a strong jobs report released on Friday, giving the central bank more room to raise interest rates. Financial stocks traded mostly lower in pre-market action, as cautious remarks from JPMorgan deepened pessimism around private credit. In contrast, major technology names were mostly higher.
