Futures on the Dow Jones fell as much as 200 points, while those on the S&P 500 and Nasdaq declined 30 and 90 points respectively. The S&P 500 and Nasdaq ended at fresh records last week with the former ending close to the 7,400 mark and the Nasdaq closing above 26,000.
Trump Rejects Iran Proposal
In a post on Truth Social, Trump wrote that he just read a response from Iran’s “so-called representatives” and that the plan is “totally unacceptable.” Iran had earlier sent another proposal to Trump through mediators in Pakistan which stressed upon the need to end the war on all fronts and to lift sanctions on Tehran.
The Wall Street Journal further reported that Iran did not agree to the US demand with regards to its nuclear program and stockpile of highly enriched uranium.
Israeli Prime Minister Benjamin Netanyahu also said that the war with Iran is “not over” and that the US and Israel still aim to bring an end to Iran’s nuclear ambitions.
Oil Prices Rise
In light of this, crude oil prices have risen in early Asia trading on Monday despite a Qatari natural gas tanker having crossed the Strait of Hormuz for the first time since the Iran war began.
Additionally, a Panama-flagged bulk carrier bound for Brazil, which had previously tried crossing the Strait on May 4, passed through the a route designated by Iran’s armed forces, as per the Tasnim news agency.
Both Brent and WTI crude are trading with gains of 3% each, with WTI closing in on $100 a barrel for the June contracts and Brent nearing $105.
The Week Ahead
With most of the major earnings on Wall Street having been reported, this week’s important triggers will include the consumer price inflation (CPI) data for the month of April, which will be reported on Tuesday, the Producer Price inflation (PPI), which will be reported on Wednesday, the US retail sales, which will be reported on Thursday and the industrial production and capacity utilization data, which will be reported on Friday.
In addition to this, as many as Five Fed officials will also be making speeches over the course of the week at various public events.
