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US stock futures dropped after a weak session on Wall Street amid pressure on Big Tech and ongoing US-Iran talks.
Futures attached to the Dow Jones Industrial Average (YM=F) slid 0.5%. Futures attached to the benchmark S&P 500 (ES=F) sank 1.2%. Futures attached to the tech-heavy Nasdaq 100 (NQ=F) dived 2.1%.
Stocks mostly fell on Monday. SpaceX (SPCX) stock slid for the third day in a row as other Big Tech players also tumbled. In the background, ongoing negotiations between the US and Iran kept investors on edge even as officials reported progress.
On Tuesday, FedEx (FDX) and Cerebras Systems (CBRS) will report earnings. Cerebras System’s results will be the AI chip company’s first since going public in May.
The key events this week include Micron (MU) earnings on Wednesday and the release of May’s PCE report — the Federal Reserve’s preferred measure of inflation — on Thursday.
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Bloomberg reports:
Oil steadied after falling more than 3% in the previous session following early progress in peace talks over the Iran war, which included a US waiver allowing some sales from the Islamic Republic.
Brent (BZ=F) crude traded near $78 a barrel after the biggest decline in almost a week on Monday, while West Texas Intermediate (CL=F) was above $74. The 60-day license permits the sale of some Iranian oil and petroleum products, citing “productive talks” in Switzerland, offering Tehran a crucial economic lifeline.
US and Iranian officials both cited progress in the first round of talks toward a lasting agreement to end the conflict that started at the end of February, but some discrepancies have emerged. Vice President JD Vance said Iran agreed to allow nuclear inspectors into the country, a claim disputed by Tehran.
The waiver permits almost anyone to purchase and pay for Iranian oil, including US refineries, although some might be unwilling to take on the risk. Supply from the Persian Gulf has ticked up recently, with producers such as Kuwait and the United Arab Emirates finding workarounds to get energy out. Iran has also shipped more more than 30 million barrels over the past week.
