S&P 500 futures held flat early Tuesday as traders weighed fading hopes for a U.S.-Iran resolution against reports of progress on reopening the Strait of Hormuz. Oil prices jumped and investors braced for July inflation data due later in the week, after a weak jobs report complicated the Federal Reserve's outlook.
S&P 500 futures were flat early Tuesday. Nasdaq 100 futures rose 0.12%. Dow Jones Industrial Average futures dipped 0.1%. The premarket moves followed a session in which the S&P 500 finished Monday little changed, as uncertainty over the Middle East conflict continued to hang over markets.
Hormuz deal prospects fade
Iran has said it is closing in on a deal with Oman to reopen the Strait of Hormuz, but Tehran has continued to resist direct negotiations with the U.S. until several conditions are met. Iranian Foreign Minister Abbas Araghchi said Sunday there was "no possibility of restarting negotiations" as long as the U.S. continues violating the June memorandum of understanding and does not compensate Iran for those violations, according to the semi-official Tasnim News Agency.
Oil prices jumped Monday as the uncertainty persisted. West Texas Intermediate crude futures settled 5.1% higher at $82.13 a barrel, while Brent crude climbed 5% to $87.72.
Inflation data looms after weak jobs report
In Asia, South Korea's Kospi closed 0.73% higher, while Australia's S&P/ASX 200 added 0.19%. Hong Kong's Hang Seng index was down 1.03% and the mainland CSI 300 fell 0.79%. Japan's markets were closed for a holiday.
Investors will next turn to a key batch of inflation data, with the July consumer price report due Wednesday and the producer price index out Thursday. The readings could prove particularly important after a weak jobs report complicated the Fed's outlook, as higher oil prices renew concerns about price pressures even as the sharp slowdown in hiring raises questions about consumer spending.
On the earnings front, Cardinal Health and On Holdings are scheduled to report Tuesday morning, with Cava Group, CoreWeave and Super Micro Computer due in the afternoon.
Source: CNBC
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