Dow Jones futures move little due to US-Iran uncertainty, Fed hawkish outlook
Dow Jones futures inch lower by nearly 0.05%, trading near 51,980 during the European hours on Monday. However, S&P 500 futures are down by 0.09% near 7,560, while Nasdaq 100 futures advance 0.14%, trading near 30,760 at the time of writing.
US stock futures are mixed, with a downward bias, as investors weigh fresh uncertainty over US-Iran peace talks and a hawkish shift in the Federal Reserve's (Fed) policy outlook.
Market sentiment initially soured following reports that US President Donald Trump threatened direct strikes on Iran if proxy attacks on Israel continue. This warning severely clouded the outlook for diplomatic progress. It threatened to dismantle the current peace framework, casting a shadow over the first round of interim talks held between Vice President JD Vance and Iranian officials.
However, severe risk aversion was partially checked after mediators Qatar and Pakistan issued a joint statement from Switzerland announcing that both Washington and Tehran have agreed to a formal roadmap aimed at securing a final peace agreement within the next 60 days.
On the macroeconomic front, investors are turning their attention to this week's release of the US PCE price index, the Federal Reserve's preferred measure of inflation. This data follows last week's central bank meeting, where policymakers left interest rates unchanged but adopted a distinctly hawkish stance. Notably, 9 out of 19 FOMC members now project at least one interest rate hike this year, prompting market participants to actively price in a potential increase as early as September.
In corporate news, the upcoming earnings calendar features critical reports from Micron Technology, FedEx, and its new spinoff, FedEx Freight. Micron's results will serve as a major bellwether for memory plays, chip-gear suppliers, and the broader artificial intelligence ecosystem.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
The AI boom may follow the path of the 19th-century railway bubble, and builders may not be the ultimate winners
Goldman Sachs analyst Bobby Molavi compared the current situation to the 19th-century British railway mania: 500 companies spent more than the nation's annual income building 8,000 miles of railway, with most early investors losing out, while the real beneficiaries were the later "passengers." He pointed out that the current AI craze is driven by both debt and momentum, and that the S&P 500’s forward P/E ratio of 18x is only "a bit cheaper." Whether the builders can retain value is uncertain, and history does not offer an optimistic answer.
If Anthropic's IPO goes smoothly and the stock price rises next week, then everything remains the same for AI. Otherwise, some companies will go bankrupt.
The shrinking valuations of two major giants have triggered a chain reaction—investors are adopting more conservative revenue multiples for AI startups and are directly halting high-valuation financing for companies with zero revenue. Multiple venture capital firms have advised their portfolio companies to lower valuation expectations and to quickly build up cash reserves. Market participants warn that the outcome of Anthropic’s IPO will be a barometer for the industry: if successful, the boom will continue; if it fails, some companies may face elimination.
After the Brazilian election, political discount deepens; Morgan Stanley remains bullish on Petrobras (PBR.US), focusing on fuel pricing and dividends
Morgan Stanley still maintains its most optimistic "Overweight" rating, but has lowered its year-end 2027 target price from $31 to $25.
Corning (GLW.US) receives initial "Buy" rating from Jefferies! AI factories driving a fiber optic rush, with a potential global supply gap of up to 30%
For Corning, the recent profit growth mainly comes from the expansion of AI clusters. As the number of optical links crossing cabinets and campuses increases, customers need to deploy more optical fibers within limited conduit and cabinet space, thus driving demand for high-density optical cables and connection systems.
Crypto prices
More
