U.S. stock index futures traded close to flat on Monday evening after Wall Street recorded strong gains during the regular session.
A sharp rebound in technology stocks supported the market. However, uncertainty surrounding possible new talks between the United States and Iran kept investors cautious.
Markets are also preparing for important U.S. employment data later this week.
Investors Await U.S. Payrolls Data
The main economic focus will be Thursday’s U.S. payrolls report.
The data could provide fresh evidence about the strength of the American economy and influence expectations for Federal Reserve interest rates.
The report will arrive ahead of the long Independence Day weekend, which could contribute to lower trading volumes and increased volatility.
S&P 500, Nasdaq and Dow Futures Edge Lower
S&P 500 futures slipped 0.05% to 7,496.50 points by 19:30 ET, or 23:30 GMT.
Nasdaq 100 futures declined 0.04% to 30,040 points.
Meanwhile, Dow Jones futures fell 0.08% to 52,531 points.
The limited moves followed a strong session across the major Wall Street indexes.
Supreme Court Decision Supports Market Sentiment
Investors also welcomed a U.S. Supreme Court decision that blocked President Donald Trump’s attempt to remove a Federal Reserve policymaker.
The ruling eased some concerns about the central bank’s independence.
That development provided additional support to market sentiment after the recent volatility in technology shares.
Technology Stocks Lead Wall Street Rebound
Technology stocks recovered sharply on Monday after suffering heavy losses during the previous week.
Artificial intelligence and semiconductor shares led the rebound.
These stocks had recently come under pressure as investors became concerned about high valuations and the possibility of rising interest rates.
Heavy profit-taking had also contributed to the previous week’s decline.
Dow Jones Reaches Record High
Buying also spread into more economically sensitive sectors.
The Dow Jones Industrial Average closed at a record high, helped by strong gains in Alphabet shares.
Alphabet completed its first trading session as a member of the Dow and finished 4.8% higher.
The Nasdaq Composite gained 2% during Monday’s session, while the S&P 500 rose 1.2%.
Iran Talks Remain Uncertain
Investors largely overlooked a fresh escalation between the United States and Iran over the weekend.
President Trump said Iran had requested further negotiations in Qatar during the week.
However, Iranian media reports indicated that Tehran denied any formal talks had been scheduled.
The conflicting statements kept financial markets cautious about the stability of the preliminary peace agreement.
U.S. and Iran Exchange Strikes
The United States and Iran exchanged military strikes during the weekend.
Both sides later agreed to halt hostilities by Monday.
Oil prices rose slightly following the developments but remained close to levels recorded before the conflict.
Strait of Hormuz Oil Flows Support Markets
A memorandum of understanding signed by the United States and Iran earlier in June had supported Wall Street sentiment.
Investors welcomed the improvement in oil flows through the Strait of Hormuz, a critical route for global energy supplies.
However, tensions between Washington and Tehran remain elevated.
Iran has continued to object to Israeli military actions against Hezbollah in southern Lebanon, adding further uncertainty to the regional outlook.
