Key Takeaways

• Futures retreat: S&P 500 futures fell 0.1% to 7,427.0, Nasdaq 100 futures dropped 0.3%, while Dow futures held flat.
• Record close achieved: The S&P 500 closed at an all-time peak of 7,412.87, with the Nasdaq Composite at 26,274.13 and Dow at 49,704.34.
• Chip rally cooling: Strength in chipmaking stocks powered Monday’s records, but the sector is showing signs of losing steam after weeks of gains.
• Trump’s “life support” warning: The president declared the Iran ceasefire on “massive life support” after rejecting Tehran’s latest peace proposal.
• Project Freedom revival weighed: Trump told Fox News he is considering restarting the Hormuz operation that sparked renewed military clashes last week.
• More military options: CNN reports Trump is mulling additional military action, with a decision unlikely before this week’s Xi summit.
• CPI in the spotlight: Headline April CPI expected to jump sharply to 3.7% year-on-year; core CPI seen steady at 2.7%.
• Fed rate cut bets fade: Waning confidence in 2026 rate cuts as Iran-driven energy costs feed inflation.
• Oil near 4-year highs: Crude prices remain elevated amid supply disruptions from the conflict.
• Trump-Xi summit looms: The historic Beijing meeting this week adds another major catalyst for markets.

U.S. stock index futures turned slightly lower on Monday evening as concerns over a worsening Middle East conflict kept investors largely on edge.

Focus was also on upcoming consumer inflation data for more insight into the inflationary impact of the Iran war.

S&P 500 futures fell 0.1% to 7,427.0 points by 22:47 ET (02:47 GMT). Nasdaq 100 futures fell 0.3% to 29,330.0 points, while Dow Jones futures held flat at 49,780.0 points.

Futures retreated after Wall Street eked out record-high closes on Monday, aided by sustained strength in chipmaking stocks.

Focus this week is also on an upcoming summit between U.S. President Donald Trump and Chinese President Xi Jinping.

Wall St Ekes Out Record Highs on Chip Strength; Iran Peace Deal Falls Through

Wall Street indexes ended at record highs on Monday, aided chiefly by strength in chipmaking stocks on sustained optimism over artificial intelligence.

Still, the sector now appeared to be losing some steam after a stellar run-up in recent weeks.

The S&P 500 rose 0.2% to a record closing high of 7,412.87 points, the NASDAQ Composite rose 0.1% to 26,274.13 points, while the Dow Jones Industrial Average rose 0.2% to 49,704.34 points.

However, bigger gains were limited after Trump rejected Iran’s latest proposal to end the war, while warning that the ceasefire with the country was on “massive life support.”

The development pointed to little prospect of immediate de-escalation in the conflict, which recently crossed the two-month mark.

Trump later told Fox News he was considering restarting a U.S. operation to reopen the Strait of Hormuz — a move that had triggered renewed military action with Iran last week.

CNN reported that Trump was also weighing additional military options against Iran, although a decision was unlikely before his summit with China’s Xi later this week.

CPI Data Awaited for More Cues on Inflation, Interest Rates

Consumer price index inflation data for April is due on Tuesday morning, and will be closely watched for further cues on the inflationary impact of the Iran war.

Headline CPI is expected to have picked up sharply — to 3.7% year-on-year — while core CPI is expected to remain mostly steady at 2.7%.

The print comes amid waning confidence in any interest rate cuts by the Federal Reserve this year, especially in the face of climbing energy costs from the Iran conflict.

Oil prices rose and remained close to four-year highs amid supply disruptions caused by the conflict. This has spilled over into higher domestic fuel prices.