S&P 500 futures edged higher early Monday amid increasing scepticism regarding the likelihood of a durable resolution to the ongoing conflict between the U.S. and Iran in the near term. Futures associated with the broad index experienced a modest increase of 0.12%, whereas Nasdaq-100 futures saw a rise of 0.38%. Futures for the Dow Jones Industrial Average were positioned slightly under the neutral mark. Iran has indicated that it is nearing an agreement with Oman to reopen the Strait of Hormuz; however, Tehran remains steadfast in its refusal to engage in direct negotiations with the U.S. until certain conditions are fulfilled. Iranian Foreign Minister Abbas Araghchi stated on Sunday that there exists “no possibility of restarting negotiations” as long as the U.S. persists in violating the June memorandum of understanding, without addressing its “violations,” as reported.

WTI crude oil experienced an increase of over 1% at the start of Monday. Last week, Treasury Secretary Scott Bessent’s remarks indicated that a deal was on the horizon. President Donald Trump stated on Sunday that the U.S. was “only semi-negotiating” with Iran and aimed for the Middle Eastern nation to experience economic pressure. The three major U.S. indexes have recently experienced their most favourable performance since April. The S&P 500 concluded the previous week at a historic closing high. Stocks received a boost at the end of the week on Friday, following the July nonfarm payrolls report, which indicated an unexpected contraction. This development has raised investor hopes that the Federal Reserve may refrain from increasing interest rates.

Traders in Fed funds futures currently assign a probability of approximately 44% to the central bank increasing rates at its September meeting, a decrease from the 67% probability observed the previous week, as indicated by CME’s FedWatch tool. Investors will closely monitor consumer and producer price index readings due out this week for the latest insights on inflation. No significant economic reports are anticipated on Monday. Market participants will be closely monitoring the forthcoming earnings reports from consumer-oriented firms such as On Holding and Cava Group, alongside technology companies including Super Micro and CoreWeave.

Asia-Pacific markets concluded the trading session on Monday with a notable upward trend, reflecting the positive momentum observed in the U.S. markets on Friday. The Nikkei 225 increased by 2.1% to finish at 66,970, whereas Hong Kong’s Hang Seng index rose by 1%. South Korea’s Kospi experienced an increase of 0.65%, while the small-cap Kosdaq saw a notable rise of 7%. European stocks commenced the trading session on Monday with little movement, as investors contemplated the ambiguity surrounding the vital shipping corridor. London’s FTSE 100 experienced a decline of 0.1%, whereas France’s CAC 40 remained unchanged, and Germany’s DAX recorded an increase of 0.1%.