The S&P 500 closed at a record high of 7,757 last Friday. However, S&P 500 futures declined early Monday due to uncertainties regarding a potential deal between the U.S. and Iran to open the Strait of Hormuz. Futures for the broad index remained flat, while Nasdaq-100 futures increased by 0.2%. Dow Jones Industrial Average futures fell by 58 points (0.11%).
Investors are looking forward to consumer and producer price index readings this week for insights on inflation, but no major economic reports are expected on Monday. Hopes for an agreement between the U.S. and Iran dimmed when Iran denied any direct negotiations about opening the waterway, causing WTI crude oil prices to rise by 1% to over $79 a barrel. Futures market traders now estimate a 44% chance of a rate hike by the Federal Reserve in September, down from 67% the previous week.
Goldman Sachs forecasts U.S. equity issuance for 2026 will reach a record $700 billion, including over $225 billion from IPOs and about $450 billion from other offerings. In Asia, Japan’s Nikkei 225 increased by over 0.54%, with similar gains in other markets. Treasury yields fell on Friday after data revealed a loss of 23,000 jobs in July, raising concerns about the labor market and the Fed's interest rate outlook. The yield on the 10-year U.S. Treasury note decreased to 4.63%.