US stock futures were mixed in trade on Monday, 22 June, as investors tracked developments in the Middle East after reports of progress in US-Iran peace talks. Technology stocks also remained subdued following their recent rally, prompting traders to adopt a wait-and-watch approach.
Futures linked to the S&P 500 fell 0.2%, while Nasdaq-100 futures were largely unchanged. Dow Jones Industrial Average futures slipped 29 points, or 0.1%.
Chip stocks, which have largely driven Wall Street’s recent gains, paused after a strong rally as investors awaited further clarity on developments in West Asia before committing to fresh positions.
Market sentiment remained tied to ongoing diplomatic efforts between the US and Iran. Reports suggested that the two countries had agreed on a roadmap aimed at reaching a final peace agreement within 60 days. The proposed framework includes the formation of a committee and a mechanism to help end hostilities in Lebanon.
“Encouraging progress has been made, including the creation of a mechanism for further technical talks,” mediators Qatar and Pakistan said in a joint statement.
The two sides have also agreed to establish a “de-confliction cell” involving the concerned parties and Lebanon to help ensure compliance with the cessation of military operations, according to the mediators.
However, the situation in Lebanon remains one of the key sticking points. The latest developments followed a mixed start to the talks on Sunday after media reports indicated that Iran had temporarily paused discussions following renewed warnings from US President Donald Trump of possible military action if Hezbollah continued attacks on Israel.
Iranian Foreign Minister Abbas Araghchi said the talks in Switzerland had made “major progress” toward stabilising the broader regional situation, despite earlier volatility and threats to suspend discussions.
Meanwhile, media reports indicated that Tehran has agreed to allow inspectors from the International Atomic Energy Agency (IAEA) to return to the country, US Vice President JD Vance said on Monday.
Last week, the US signed an interim agreement with Iran under which it eased restrictions on Iranian ports and allowed the country to resume oil exports. The agreement also includes the unfreezing of certain Iranian assets, although the timeline for implementation remains unclear.
“Looking ahead, markets are focused on Thursday’s Personal Consumption Expenditures (PCE) report, the Federal Reserve’s preferred inflation gauge. Economists expect inflation to accelerate modestly in May, a result that could reinforce expectations that interest rates remain elevated for longer,” domestic brokerage firm Vested Finance said.
Crude oil prices retreat
Crude oil prices declined following the latest developments in the Middle East, with Brent crude futures falling 2% to around $79 a barrel, on track for their first decline in three sessions.
US West Texas Intermediate (WTI) crude futures also slipped 2% to $74.62 a barrel. Progress in diplomatic talks and efforts to ensure safe passage through the Strait of Hormuz have eased concerns over potential supply disruptions and inflationary pressures.
Last week, both Brent and WTI crude extended their losses for a second consecutive week, retreating to levels seen before the recent conflict and trading about 35% below their recent peaks.
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