Dow Jones futures depreciate as US–Iran peace talks stall

Dow Jones futures falls 0.16%, trading near 49,300 during the European hours on Monday, ahead of the United States (US) regular opening. Meanwhile, S&P 500 and Nasdaq 100 futures decline 0.10% and 0.06% to near 7,190 and 27,420, respectively.

US stock futures lose ground as risk aversion increases on stalled US–Iran peace talks. US President Donald Trump called off that delegation to Pakistan to potentially discuss directly with Iran. Iranian President Masoud Pezeshkian stated that his nation won’t enter “imposed negotiations under threats or blockade.” However, Axios reported on Monday, citing a US official and two informed sources, that Iran has proposed reopening the Strait of Hormuz and ending the war, while deferring nuclear talks.

Higher energy prices heighten concerns over persistent inflationary pressures and hawkish tone surrounding the central banks. However, the US Federal Reserve is expected to act cautiously, with gradual rate cuts anticipated under incoming Chair Kevin Warsh. Warsh is expected to assume the role in May.

The Fed is widely expected to keep interest rates unchanged at its upcoming April policy meeting due on Wednesday. Traders will closely watch the Fed’s press conference for more clues on how policymakers are interpreting the impact of higher energy costs and whether this alters their longer-term outlook on interest rates. Meanwhile, investor focus turns to earnings from megacap tech firms this week, including Microsoft, Amazon, Alphabet, Meta, and Apple.