Crude oil prices have continued to trade higher as shipping through the Strait of Hormuz remains constrained, fuelling supply concerns(Getty Images via AFP)AI Quick ReadUS stock futures were trading with marginal losses in Monday’s session, 27 April, after hopes for a second round of ceasefire negotiations between Washington and Tehran unravelled over the weekend.
Futures tied to the three key indices — the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite — were trading largely unchanged from the previous close.
In regular trade on Friday, both the S&P 500 and Nasdaq notched fresh record highs. However, uncertainty over potential peace talks between the US and Iran is capping the rally, while the rebound in oil prices and key central bank meetings lined up this week are prompting investors to take cautious bets.
US President Donald Trump on Saturday scrapped plans to send US special envoy Steve Witkoff and Jared Kushner to Pakistan for ceasefire talks related to Iran, noting that the negotiations could instead happen over the phone, while Iranian President Masoud Pezeshkian reiterated that Tehran would not engage in “imposed negotiations under threats or blockade.”
Trump had last week announced an extension to the two-week truce without specifying a deadline for reaching a deal to end the war. With a fragile ceasefire in place, the US and Iran remain locked in a standoff over the Strait of Hormuz, keeping crude oil prices elevated and intensifying energy-driven inflation fears.
While uncertainty lingers over a second round of peace talks, recent media reports suggest that Iran has submitted a new proposal to the US aimed at reopening the Strait of Hormuz and ending the war.
Tehran has reportedly signalled that it would accept an interim deal to reopen Hormuz in exchange for the U.S. lifting its blockade of Iranian ports, according to Bloomberg, citing Axios.
Despite tensions in West Asia remaining high, US stocks have hit back-to-back record highs, supported by an unprecedented rally in chipmakers and robust corporate earnings. In the process, the S&P 500 has gained 10% so far this month and has recouped all war-driven losses.
The Nasdaq has surged over 15%, while the blue-chip Dow has advanced more than 6% month to date.
In terms of earnings, four tech hyperscalers — Alphabet, Microsoft, Amazon, and Meta Platforms—are due to report their financial performance on Wednesday, followed by Apple a day later. Representing about a quarter of the S&P 500’s market capitalisation, these firms will give investors a clearer read on whether the ongoing rally is sustainable.
Meanwhile, major central banks are expected to stay on hold this week, including Britain, the US, Japan, and Europe.
Crude oil prices have continued to trade higher as shipping through the Strait of Hormuz remains constrained, fuelling supply concerns. Benchmark US crude jumped $2.6 to $97.10 a barrel, while Brent crude, the international benchmark, gained another $3.1 to reach a three-week high of $108.43 a barrel.
The Iran conflict has now entered its ninth week, triggering what the International Energy Agency (IEA) has described as one of the biggest energy supply shocks on record, while intensifying inflationary pressures and weighing on the global growth outlook.
Vested Finance noted that the rebound in crude oil prices was once again adding pressure on fuel-sensitive sectors. Airline stocks are in focus after reports that carriers, including Frontier Airlines and Avelo Airlines, are seeking $2.5 billion in government support, highlighting the stress from elevated fuel costs.
On the positive side, it said the momentum around artificial intelligence continues to dominate investor sentiment. Qualcomm shares gained nearly 10% in premarket trading after reports of a potential partnership with OpenAI and MediaTek to develop smartphone processors.
The brokerage said the move reinforces how deeply AI is now influencing hardware demand expectations.
On the flip side, Meta Platforms is under pressure after China blocked its $2 billion acquisition of AI startup Manus, underscoring rising geopolitical scrutiny in cross-border technology deals.
In the financial space, the brokerage highlighted that Nomura Holdings is falling after missing earnings estimates due to writedowns and losses in Europe.
“Markets are steady at the index level, but beneath the surface, AI optimism, oil volatility, and geopolitics are driving sharp divergences across stocks," it further added.
(With inputs from AP and Bloomberg)
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Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments.
He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom.
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