US Stock Futures Point Lower as Crude Oil Prices Rebound: Dow Jones, S&P, Nasdaq, Wall Street

US stock futures pointed to a lower opening on Monday as crude oil prices rebounded following developments involving Iran and the Strait of Hormuz.

US crude oil futures rose 2.6% after declining 2.3% on Friday, when reports emerged of an Iranian proposal concerning a ceasefire and the reopening of the Strait of Hormuz.

President Donald Trump rejected Iran’s conditional proposal, according to the source material. The proposal would have provided for a seven-day ceasefire, the reopening of the strait and the resumption of nuclear talks in exchange for the US lifting its blockade of Iranian ports.

The Wall Street Journal, citing US officials, reported that Trump had told aides he expects to resume bombing Iran after the November midterm elections.

US Economic Calendar in Focus

Trading activity could be affected by a relatively limited US economic calendar at the start of the week.

On Wednesday, the Commerce Department is scheduled to release its August report on personal income and spending, which includes inflation measures monitored by the Federal Reserve.

The figures will provide investors with additional information on inflation ahead of the Federal Reserve’s next monetary policy meeting late next month.

Wall Street Ended Friday Higher

US stocks finished higher on Friday after fluctuating during the early part of the session.

The Dow Jones Industrial Average gained 478.64 points, or 0.9%, to close at 51,828.62, after previously reaching its lowest closing level in more than three months.

The Nasdaq Composite advanced 129.34 points, or 0.5%, to 27,068.72, while the S&P 500 gained 39.28 points, or 0.5%, to finish at 7,743.41.

For the week, the Nasdaq rose 2.1%, the S&P 500 gained 1.2% and the Dow increased 0.3%.

Oil Prices and Treasury Yields Remain in Focus

Friday’s session coincided with a decline of more than 2% in US crude oil futures following a 4.5% increase over the preceding two sessions.

The decline followed reports that Iran had submitted a proposal to the US concerning an end to the conflict and the reopening of the Strait of Hormuz.

Treasury yields, meanwhile, remained elevated. The yield on the benchmark 10-year Treasury note finished Friday at its highest closing level since July 2007 after retreating from its intraday high.

The source material said concerns about inflation had contributed to expectations for another Federal Reserve interest-rate increase next month.

Airlines and Technology Stocks Advanced Friday

Airline stocks recorded gains on Friday as crude oil prices declined, with the NYSE Arca Airline Index rising 3.7% to its highest closing level in more than a month.

Computer hardware stocks also advanced, with the NYSE Arca Computer Hardware Index gaining 2.3%.

Semiconductor, software and banking stocks also moved higher during the session, while natural gas stocks declined alongside natural gas prices.

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