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Stock futures fall as oil prices rise; investors await key reading on inflation
U.S. equity futures slipped and oil prices rose on Sunday as Wall Street monitored developments in Iran war negotiations and awaited key inflation data. S&P 500 futures fell 0.4%, Nasdaq-100 futures dropped 0.6%, and Dow Jones Industrial Average futures lost 183 points (0.4%). Oil prices climbed amid Middle East uncertainty: U.S. West Texas Intermediate rose nearly 3% to about $78 per barrel, while Brent crude added over 1% to roughly $81. The moves followed President Donald Trump's Sunday threat of fresh strikes on Iran unless its leaders stop "their highly paid PROXIES in Lebanon from causing trouble." Vice President JD Vance met Iranian officials for the first round of negotiations in Switzerland, after earlier talks were called off. Last week, the three major U.S. indexes staged a comeback Thursday after a Wednesday sell-off fueled by uncertainty over monetary policy. The S&P 500 gained nearly 1% for the week, its 11th winning week in 12. The Dow rose close to 1%, while the Nasdaq Composite advanced over 2%. Markets were closed Friday for Juneteenth. This week's key test is Thursday's release of May's personal consumption expenditures (PCE) price index, the Fed's preferred inflation gauge. Core PCE (excluding food and energy) is expected to increase from April, according to FactSet economists. After the Fed's hawkish meeting last week, expectations for an interest rate hike were pulled forward to as early as October. Investors are focused on any inflation reading that could signal imminent rate hikes. Fundstrat Global Advisors' Tom Lee noted on CNBC's "Closing Bell" that while catalysts like Fed task forces and Strait of Hormuz supply chain impacts could affect markets, the environment remains positive. "We still believe later this year there is going to be an abrupt change... but we don't want to stand and call a top," he said. "Conditions are still favorable for stocks."