Dow Jones futures move little due to US-Iran uncertainty, Fed hawkish outlook

Dow Jones futures inch lower by nearly 0.05%, trading near 51,980 during the European hours on Monday. However, S&P 500 futures are down by 0.09% near 7,560, while Nasdaq 100 futures advance 0.14%, trading near 30,760 at the time of writing.

US stock futures are mixed, with a downward bias, as investors weigh fresh uncertainty over US-Iran peace talks and a hawkish shift in the Federal Reserve's (Fed) policy outlook.

Market sentiment initially soured following reports that US President Donald Trump threatened direct strikes on Iran if proxy attacks on Israel continue. This warning severely clouded the outlook for diplomatic progress. It threatened to dismantle the current peace framework, casting a shadow over the first round of interim talks held between Vice President JD Vance and Iranian officials.

However, severe risk aversion was partially checked after mediators Qatar and Pakistan issued a joint statement from Switzerland announcing that both Washington and Tehran have agreed to a formal roadmap aimed at securing a final peace agreement within the next 60 days.

On the macroeconomic front, investors are turning their attention to this week's release of the US PCE price index, the Federal Reserve's preferred measure of inflation. This data follows last week's central bank meeting, where policymakers left interest rates unchanged but adopted a distinctly hawkish stance. Notably, 9 out of 19 FOMC members now project at least one interest rate hike this year, prompting market participants to actively price in a potential increase as early as September.

In corporate news, the upcoming earnings calendar features critical reports from Micron Technology, FedEx, and its new spinoff, FedEx Freight. Micron's results will serve as a major bellwether for memory plays, chip-gear suppliers, and the broader artificial intelligence ecosystem.