U.S. stock index futures started the week on a subdued note, after Friday’s public holiday, with investors monitoring developments in U.S.-Iran talks following a tense start. Oil prices fell as much as 2% as the first round of talks concluded, with Washington and Tehran agreeing to a roadmap toward a final deal within 60 days. Expectations that a peace deal would be reached helped the three key indexes end with significant weekly gains on Thursday with the Nasdaq gaining 2.4% as technology shares continued to drive markets higher. “Following the announced US-Iran deal, the backdrop for equity markets remains broadly constructive: the AI tide is lifting all manufacturing boats, the US economy is holding up well, and EM economies have proved more resilient than in past crises,” said Michele Morganti.

At 04:53 a.m., Dow E-minis were down 49 points, or 0.09%, S&P 500 E-minis were down 12 points, or 0.16%, and Nasdaq 100 E-minis were up 2.5 points, or 0.01%. Shares of memory chipmakers moved higher in premarket trading, with Micron Technology and Sandisk gaining about 3.5% each. Intel rose 4.1%. The next test for the rally will be Micron’s quarterly results on Wednesday. Shares of the memory chipmaker have risen almost 300% for the year. AI-driven optimism has underpinned Wall Street’s recent rally, while a resilient economy and hopes of an end to the four-month-long Middle East war have aided the wider market.

The focus this week will be on Thursday’s PCE data, the Federal Reserve’s preferred gauge of core inflation. A hotter-than-expected print could add to expectations of a hawkish Fed following chair Kevin Warsh’s first meeting on Wednesday where he underscored the need to curb inflation. Markets currently expect a 25 basis point rate hike from the Fed in September, according to LSEG data. The two-year yield, which reflects near-term rate expectations, hit its highest level since early 2025 at 4.230%.

Comments from central bank speakers this week including New York President John Williams and Chicago President Austan Goolsbee will be closely watched, after policymakers signaled higher borrowing costs during last week’s meeting. Among other movers, SpaceX shares slipped 3.7% to $178 after two straight sessions of drops following a stellar debut. Apogee Therapeutics jumped 53% after the source reported that AbbVie was near a deal to acquire the inflammatory disease drug developer for about $10.9 billion.