Unite States stock futures edged lower on Sunday night (Monday AEST) as doubts grew over whether the U.S. and Iran will soon reach an agreement to reopen the Strait of Hormuz.
By 10:10 am AEST (12:10 am GMT), Dow futures were down 0.3%, S&P 500 futures had slipped 0.2%, while Nasdaq-100 futures were 0.1% lower.
Optimism that the U.S. and Iran were close to an agreement allowing vessels to freely transit the strategic waterway weakened over the weekend after Iran denied holding direct negotiations with Washington over reopening the strait.
Last week, Treasury Secretary Scott Bessent suggested in comments to CNBC that a deal was imminent.
However, President Donald Trump told Axios on Sunday that the U.S. was "semi-negotiating” with Iran and wanted to maintain economic pressure on the country.
The three major U.S. indexes are coming off their strongest weekly performances since April, with the S&P 500 ending last week at a record closing high.
Stocks received a boost on Friday after July nonfarm payrolls unexpectedly declined, raising expectations that the Federal Reserve could hold off on raising interest rates.
Fed funds futures are now pricing in a 44.4% chance of a rate hike at the Fed's September meeting, down from 67% a week earlier, according to the CME Group FedWatch Tool.
Investors will focus on consumer and producer price inflation data due later this week for further clues on the outlook for monetary policy.
Traders will also monitor corporate earnings, with consumer-focused companies including On Holding and Cava Group due to report results, alongside technology firms such as Super Micro and CoreWeave.
