U.S. Stock market is set for a volatile start on Monday as S&P 500, Dow Jones, Nasdaq stocks futures fell in the pre-market trading after investors' sentiments dealt with conflicting messages about the Iran war and news that the Strait of Hormuz was closed again. Wall Street indexes touched record highs on Friday. U.S. stocks have been supported through the past week by expectations of robust first-quarter earnings, the bulk of which come this week.
S&P 500 futures were down by 0.56 per cent, Dow futures fell 0.69 per cent, Nasdaq futures dropped 0.50 per cent.
Oil prices have jumped, and the U.S. dollar rose. In early Asian trading Brent crude futures jumped about 7 per cent to $96.85 a barrel and S&P 500 futures fell about 0.9 per cent. The euro was down 0.3 per cent at $1.1735 and the yen eased around 0.2 per cent to 158.95 per dollar.
The dollar's rise took it from lows it hit on Friday when Iran's announcement that it would open the strait sent stocks up and oil prices tumbling.
Iran rejected new peace talks with the United States, its state news agency reported on Sunday, hours after U.S. President Donald Trump said he was sending envoys for talks in Pakistan and would launch new strikes on Iran unless it accepts his terms. Tensions also rose after the U.S. said it seized an Iranian cargo ship that tried to run its blockade.
Iran's announcement that it would open the Strait had sent stocks and bonds surging on Friday and oil prices down as investors bet on an end to a seven-week war that shut the Strait of Hormuz, a vital artery for global crude and gas shipments.
"Now that Hormuz is closed again after about 12 hours of being open, you'd probably expect most of the move that we saw on Friday (in bonds) to unwind. If it is indeed firmed up that Iran aren't going to attend (the talks), you're going to see a much more risk-averse reaction than we're seeing now," said Michael Brown, senior research strategist at Pepperstone in London.
Following the start of the war, the S&P 500's slide took the benchmark index down 9 per cent from its January peak. Since its recent low on March 30, the index has stormed back 12 per cent, closing this week above the 7,000 level for the first time.
In looking at S&P 500 pullbacks between 5 per cent to 10 per cent since 1928, Bespoke Investment Group noted that the index had never before rallied back to all-time highs in just 11 trading sessions, as it achieved on Wednesday.
The Nasdaq ended Friday up for a 13th straight session, the first time that has happened since 1992.
S&P 500 futures were down by 0.56 per cent, Dow futures fell 0.69 per cent, Nasdaq futures dropped 0.50 per cent.
Oil Prices, U.S. Dollar
Oil prices have jumped, and the U.S. dollar rose. In early Asian trading Brent crude futures jumped about 7 per cent to $96.85 a barrel and S&P 500 futures fell about 0.9 per cent. The euro was down 0.3 per cent at $1.1735 and the yen eased around 0.2 per cent to 158.95 per dollar.
The dollar's rise took it from lows it hit on Friday when Iran's announcement that it would open the strait sent stocks up and oil prices tumbling.
U.S.-Iran War
Iran rejected new peace talks with the United States, its state news agency reported on Sunday, hours after U.S. President Donald Trump said he was sending envoys for talks in Pakistan and would launch new strikes on Iran unless it accepts his terms. Tensions also rose after the U.S. said it seized an Iranian cargo ship that tried to run its blockade.
Iran's announcement that it would open the Strait had sent stocks and bonds surging on Friday and oil prices down as investors bet on an end to a seven-week war that shut the Strait of Hormuz, a vital artery for global crude and gas shipments.
"Now that Hormuz is closed again after about 12 hours of being open, you'd probably expect most of the move that we saw on Friday (in bonds) to unwind. If it is indeed firmed up that Iran aren't going to attend (the talks), you're going to see a much more risk-averse reaction than we're seeing now," said Michael Brown, senior research strategist at Pepperstone in London.
S&P 500, Nasdaq Witness Historic Highs
Following the start of the war, the S&P 500's slide took the benchmark index down 9 per cent from its January peak. Since its recent low on March 30, the index has stormed back 12 per cent, closing this week above the 7,000 level for the first time.
In looking at S&P 500 pullbacks between 5 per cent to 10 per cent since 1928, Bespoke Investment Group noted that the index had never before rallied back to all-time highs in just 11 trading sessions, as it achieved on Wednesday.
The Nasdaq ended Friday up for a 13th straight session, the first time that has happened since 1992.
