U.S. stock index futures moved lower on Monday as technology stocks remained under pressure following sharp losses in Alphabet and SpaceX shares, weighing on Wall Street sentiment after the previous session.
Market movements came as investors closely monitored developments in negotiations between the United States and Iran. Participants indicated that some progress had been made during talks held in Switzerland over the weekend, although Washington continued to issue new warnings toward Tehran.
S&P 500 futures fell 0.17% to 7,528.25 points, while Nasdaq 100 futures declined 0.3% to 30,553.50 points. Meanwhile, Dow Jones futures remained largely unchanged at 52,124 points.
U.S. equities ended Monday’s session on a mixed note following a long weekend. The S&P 500 slipped 0.4%, the Dow Jones Industrial Average gained 0.3%, and the Nasdaq Composite dropped 1.3%.
The technology sector faced notable pressure after Alphabet shares fell about 5% following the departure of two senior artificial intelligence executives within a matter of days, raising investor concerns about the company’s ability to retain key talent amid intensifying competition in the sector.
SpaceX shares also recorded sharp losses of around 16%, giving back a significant portion of the gains achieved after its recent market debut earlier this month. The decline came after analysts at KeyBanc adopted a more cautious stance on the stock, citing concerns over the company’s elevated valuation and the need for greater clarity regarding the progress of the Starship program and future commercial expansion plans.
On the geopolitical front, U.S. and Iranian officials expressed positive signals regarding the latest round of talks, while mediators from Pakistan and Qatar reported that both sides had agreed to continue technical negotiations in the coming days with the aim of reaching a comprehensive peace agreement.
These developments helped ease market concerns to some extent, particularly as oil prices retreated toward levels seen before the recent escalation of tensions and shipping activity through the Strait of Hormuz improved.
According to reports, the United States and Iran agreed on a 14 point memorandum of understanding aimed at halting hostilities and establishing a framework for a broader peace plan during a 60 day negotiation period.
At the same time, investors are awaiting several key U.S. economic reports this week for further clues about the outlook for interest rates. June Purchasing Managers’ Index (PMI) data are scheduled for release, followed by the revised first quarter GDP reading and the Personal Consumption Expenditures (PCE) Price Index.
The PCE Price Index is particularly important as it is the Federal Reserve’s preferred measure of inflation. This comes as market expectations have increasingly favored keeping interest rates unchanged, with only limited expectations of further rate hikes this year.
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