US Stock Market Remains Steady Amid Stalled US-Iran Peace Talks, Brent Crude Prices Surpass $108

US Stock Futures Trading Flat Amid Uncertainty Over Iran Peace Talks

US stock futures were trading largely unchanged on Monday, 27 April, as hopes for a second round of ceasefire negotiations between Washington and Tehran unraveled over the weekend. The three key indices - the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite - remained steady, with futures trading in line with the previous close.

In regular trade on Friday, both the S&P 500 and Nasdaq Composite 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. 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.

Peace Talks Unravel

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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. 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.

Oil Prices Surge

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.

Stocks in Focus

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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, Qualcomm shares gained nearly 10% in premarket trading after reports of a potential partnership with OpenAI and MediaTek to develop smartphone processors.

Earnings and Central Banks

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.

Comparison of Stock Performance

Note: The comparison of stock performance is based on the latest available data as of Monday, 27 April.