The Dow futures were down over 160 points on Sunday evening local time, while the S&P 500 futures declined 25 points. The Nasdaq futures were down 100 points as well. The Dow Jones had managed a 0.3% weekly gain after three weeks of losses, having gained nearly 500 points last Friday. The S&P 500 and the Nasdaq had their best weeks since early August, with gains of 1.2% and 2.1% respectively on a weekly basis.
US President Donald Trump rejected Iran’s latest proposal to reopen the Strait of Hormuz, although he did tell Axios that he expects talks to continue during the course of the week. In a separate Wall Street Journal report, the outlet reported that Trump expects the bombing campaign in Iran to resume after the mid-term elections in November.
Crude oil prices rose as a result, with Brent crude rising as much as 2% to $106.29 a barrel, while the West Texas Intermediate rising towards the $94 a barrel mark.
The rise in crude oil prices comes even after Kpler reported that crude exports from Saudi Arabia reached their highest level since the Iran war began, and are back to their monthly average of 2025. Saudi exports reached 6 million barrels per day in September, up from 3.4 million barrels per day in August.
Industry sources also told Reuters that the East-West pipeline has resumed operations on low volumes and is slowly ramping up.
An important week lies ahead for Wall Street as the third quarter of calendar year 2026 comes to an end on September 30.
More Federal Reserve officials are slated to speak this week, with many already alluding to their hawkish policy stance in their speeches last week, calling for more rate hikes to tame inflation.
Chicago Fed President Austan Goolsbee and New York Fed President John Williams are slated to speak on Tuesday, while Dallas Fed President Lorie Logan is slated to speak on Friday.
Wednesday will also see the third revised estimate of the Q2 GDP data, wholesale and retail inventories data, and the Personal Consumption Expenditure (PCE) inflation report for the month.
Thursday will see the weekly jobless claims report along with the manufacturing PMI data for September, while Friday will bring the monthly jobs report, which estimates are projecting to be between 75,000 to 90,000, along with the factory orders data.