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• Meanwhile, U.S. negotiators led by Vice President J.D. Vance met Iranian officials in Switzerland on Sunday to discuss strategies to preserve the ceasefire. 
• A new AP-NORC poll shows that 65% of Americans disapprove of President Trump's handling of Iran. 
• Oil prices edged higher in the overnight session late Sunday over renewed tensions in the Strait.

U.S. stock futures fell in the overnight session late Sunday as renewed tensions between Washington and Tehran reignited concerns about the success of peace negotiations between the countries.

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President Donald Trump threatened fresh strikes on Iran after Tehran closed the Strait of Hormuz over hostilities in Lebanon ahead of the first peace talks in Switzerland over the weekend.

Dow futures fell 0.12%, S&P 500 futures declined about 0.21%, and the Nasdaq 100 futures traded 0.22% lower as of 9.24 p.m ET. Meanwhile, oil prices inched higher.

Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY), the Invesco QQQ Trust (QQQ), and the SPDR Dow Jones Industrial Average ETF Trust (DIA) all traded in the red at the time of writing. Retail sentiment was in the ‘bullish’ territory for SPY and DIA, while it was in the ‘neutral’ territory for QQQ.

The iShares 20+ Year Treasury Bond ETF (TLT) was trading down 0.31% amid ‘bullish’ sentiment at the time of writing.

How Did US Markets Fare Last Week?

U.S. markets were closed on Friday in observance of Juneteenth National Independence Day, commemorating the end of slavery in the country.

On Thursday, all three benchmark indexes closed higher amid optimism about the peace deal and a jump in the technology sector. The Dow, S&P 500, and Nasdaq Composite also ended the week in the green.

The Nasdaq Composite led the climb on Thursday, adding nearly 500 points to close up 1.91% higher. The Dow closed up 0.14% while the S&P 500 was up 1.08% at close.

US Market Drivers

Market sentiment weakened after Iran announced over the weekend that it was restricting traffic through the Strait of Hormuz again, citing continued Israeli military operations in Lebanon. Iran argued that Washington had failed to uphold commitments to curb hostilities in Lebanon.

However, tensions rose after President Trump threatened fresh military action against Iran. In a Truth Social post on Sunday, Trump said, “Iran must immediately stop their highly paid PROXIES in Lebanon from causing trouble. If they don’t, we’ll hit Iran very hard again, just like we did last week, only harder!!!” Earlier, Trump told Fox News that he warned Iranian officials that if the Strait was closed, “you won't have a country."

The developments coincided with the first round of talks under the interim peace deal, held in Switzerland, where U.S. negotiators led by Vice President JD Vance met Iranian officials to discuss strategies aimed at preserving the ceasefire, ensuring the Strait of Hormuz remains open, and laying the groundwork for future negotiations on Iran's nuclear program and sanctions relief. The talks concluded on Sunday after having been called off earlier.

Following the first day of talks, Iranian Foreign Ministry spokesperson Esmail Baghaei has reportedly said “discussions were held on the remaining clauses [of the MoU] that are necessary to begin final negotiations,” according to Al Jazeera.

Meanwhile, a new AP-NORC poll from last week found that 65% of Americans disapprove of President Donald Trump's handling of Iran, while 53% believe U.S. military action against Tehran has gone too far, and only 34% approve of his approach to Israel.

“A potential unraveling of the US-Iran Memorandum of Understanding, which remains incredibly fragile given the events over the weekend,” is one of the biggest risks to stock gains, Tony Sycamore, an analyst at IG in Sydney, said, according to Bloomberg.

On the economic front, markets will be watching May’s core Personal Consumption Expenditures data, the Federal Reserve’s preferred inflation gauge, for cues on persistent price pressures.

Last week, the Federal Reserve left interest rates unchanged at Kevin Warsh’s first policy meeting as chair. Updated projections showed officials now expect one rate hike in 2026, with the median federal funds rate forecast rising to 3.8%, up from 3.4% in March.

Trending Stocks To Watch

Intel Corp. (INTC): The legacy chip maker’s shares jumped more than 5% higher in the overnight trading session as it continues to garner attention amid the production of its advanced 18A-P chip. CEO Lip-Bu Tan said on a podcast last week that he aims to grow the company’s value tenfold over the next five to ten years and is reshaping its technology strategy.

MoonLake Immunotherapeutics (MLTX): Shares of the biotech company jumped nearly 13% overnight late Sunday at the time of writing after it posted strong one-year Phase 3 results for its lead treatment for hidradenitis suppurativa (HS), ahead of its Investor Day on Monday.

SanDisk Corp. (SNDK): Shares of the company jumped onto the retail radar and climbed more than 2% in the overnight session amid a sustained AI-driven rally. Apple CEO Tim Cook’s comments on pricing from last week have also reinforced expectations for strong AI-driven memory demand.

Keel Infrastructure Corp. (KEEL): The digital and energy infrastructure company remained on the retail radar, climbing more than 6% overnight as investors continued to speculate on potential hyperscaler lease deals.

Global Market Trends

Oil prices edged higher in the overnight session late Sunday over renewed tensions in the Strait. At the time of writing, Brent crude futures expiring in August were trading at around $80.25 per barrel after declining last week. Meanwhile, WTI crude futures expiring in July climbed 1.20%, trading around $77.52 a barrel.

Yields on the 10-year Treasury were up to 4.477% at the time of writing, while spot gold prices fell to around $4,139.90 an ounce.

Meanwhile, U.K. Prime Minister Keir Starmer is expected to announce his resignation as soon as Monday after facing mounting pressure from allies of Andy Burnham, who is emerging as the frontrunner to succeed him, and putting the country on course for its seventh leader in a decade.

However, Asian markets climbed higher at the open on Monday, with Japan’s Nikkei 225 leading the gains, trading 1.75% higher at the time of writing. South Korea's KOSPI, China’s SSE Composite index and Australian stocks were also climbing higher at the open.

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