Why Nasdaq, S&P 500, Dow Futures Are Trading Mixed Overnight Ahead Of Inflation Data

• Iran has said that an agreement with Oman to manage the Strait of Hormuz is ongoing, but it would still not be sufficient to reopen the critical waterway, unless the U.S. meets a list of conditions.
• Global oil prices edged higher as latest developments have further pressured oil prices as concerns over disrupted energy supplies and subsequent rise in inflation have markets worried.
• Investors will also turn their focus to the July inflation data later this week, with consumer price index (CPI) due on Wednesday and producer price index (PPI) due on Thursday.

U.S. stock futures were trading mixed in the overnight session late Monday as a deal between the U.S. and Iran to reopen the Strait of Hormuz is shrouded in uncertainty even as investors look forward to key inflation data later this week. 

Dow futures were down 0.04%, while S&P 500 futures climbed 0.11%, and Nasdaq-100 futures gained 0.32% at 10:30 PM EDT.

U.S. stocks closed lower on Monday after posting strong gains last week. The Dow was down 0.11% at close, while the S&P 500 was little changed, closing down 0.06%. The Nasdaq Composite also ended the session 0.32% lower. 

What’s Driving US Markets?

U.S. markets are keenly watching for updates on negotiations between the U.S. and Iran to end the ongoing conflict and reopen the Strait of Hormuz. 

While Iran has said that an agreement with Oman to manage the Strait of Hormuz is ongoing, it would still not be sufficient to reopen the critical waterway, unless the U.S. meets a list of conditions.

However, U.S. President Donald Trump said on Monday that he would seek compensation from Iran as part of any peace agreement. 

“I see that Representatives of the Islamic Republic of Iran are asking for compensation for the damage done to them during the last five month Military Conflict (started because, THEY WILL NOT HAVE A NUCLEAR WEAPON), even though it was never mentioned in any of our negotiations or meetings! But it is an interesting idea because now I am likewise demanding compensation from Iran, for all of the people that they have killed and gravely wounded with their roadside bombs and many conflicts, for which they are famous, as led initially by General Soleimani, including the families of those killed on the USS Cole, and thousands of others killed in combat,” Trump said in a post on Truth Social. 

“Additionally, compensation should be paid to the families of the hundreds of thousands of innocent protestors that Iran has killed over the last 50 years, not to mention the 52,000 that have been killed in the last five months. I have instructed my representatives to put this firmly into any, and all, future negotiations.”

Economist Steve Hanke said in a post on X, “Last year, 53 tankers crossed the Strait of Hormuz on August 9. This year, 3 tankers crossed on August 9. THANKS TO PRES. TRUMP, THE STRAIT IS, FOR ALL PRACTICAL PURPOSES, CLOSED.” 

The latest developments have further pressured oil prices as concerns over disrupted energy supplies and subsequent rise in inflation have markets worried. 

Global oil prices were climbing at the time of writing. Brent crude futures expiring in October were up about 0.19% to $87.89 a barrel. Meanwhile, WTI crude futures expiring in September were trading at $82.33 per barrel, up about 0.24% at the time of writing. 

Meanwhile, earnings season has brought some cheer to markets as some of the marquee names have posted strong results in recent weeks. A number of technology and AI-related companies will report their quarterly prints. 

Super Micro Computer Inc. (SMCI), CoreWeave Inc. (CRWV), and POET Technologies Inc. (POET) will post results on Tuesday, while Infleqtion Inc. (INFQ) and Nebius Group N.V. (NBIS) are slated to release their reports later this week. 

Investors will also turn their focus to the July inflation data later this week, with consumer price index (CPI) due on Wednesday and producer price index (PPI) due on Thursday, as markets weigh expectations for the Federal Reserve’s next monetary policy decision. 

“We’ve seen the Federal Reserve favor the labor side of their mandate repeatedly over the last few years, so despite continued elevated inflation levels it would not be surprising if the Fed were to proceed with caution against hiking interest rates when the last two labor market readings have been somewhat weak,” Brent Schutte, CIO at Northwestern Mutual Wealth Management Company, told CNBC. 

Trending Stocks To Watch 

Riot Platforms Inc. (RIOT): Shares of the company surged more than 24% overnight on reports that it has signed a deal to supply $9.1 billion worth of compute to Anthropic. 

Rocket Lab USA Inc. (RKLB): The space stock jumped onto the retail radar after it snapped a seven-day rally on Monday after it posted second-quarter (Q2) results. While revenue of $234.07 million was up 62% from the previous year and above consensus expectations, its loss of $0.08 per share was wider than expected. 

Hims & Hers Health Inc. (HIMS): The stock slumped nearly 6% overnight after posting Q2 results. Hims & Hers posted better-than-expected Q2 revenue and adjusted EBITDA, adding nearly 300,000 subscribers, though margins declined and the company reported an $86 million net loss amid acquisition, restructuring and legal costs.

Fermi LLC (FRMI): The company’s shares jumped nearly 21% higher overnight after the company announced its first binding customer lease at the Project Matador campus in Texas.

Other Market Trends 

Yields on the 10-year Treasury were at 4.705% at the time of writing, while spot gold prices increased to $4,420.44 per ounce. 

Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY) and the Invesco QQQ Trust (QQQ) edged higher at the time of writing, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) was down marginally. 

The iShares 20+ Year Treasury Bond ETF (TLT) was down 0.12% amid ‘neutral’ sentiment.

Asian markets were trading mixed on Tuesday morning. South Korea’s KOSPI and Japan’s Nikkei 225 were up at the time of writing, while China’s SSE Composite edged lower at the open. Australian stocks were also climbing at the time of writing. 

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