US Futures Mixed as Iran Sanctions Relief Weighs on Oil, Gold

US equity futures are trading mixed in pre-market hours as investors digest news of US sanctions relief on Iran, which has sent oil prices down 1% and gold falling over 2% overnight. The developments come as new Lebanon-Israel peace talks are set to begin, adding to geopolitical uncertainty in the Middle East.

Overnight Developments

Asian markets closed mixed, with Japan’s Nikkei gaining 0.8% while Hong Kong’s Hang Seng declined 1.2%. European markets are trading lower in early session, with the STOXX 600 down 0.6% as energy stocks face pressure from falling oil prices.

The dollar strengthened overnight on Federal Reserve rate-hike expectations, contributing to gold’s decline to $2,340 per ounce. WTI crude oil fell to $78.20 per barrel as investors focus on potential increased flows through the Strait of Hormuz following peace talk announcements.

India announced plans to pivot toward Russian crude and coal imports to mitigate Iran war fallout, with LPG imports from the US set to cross 1 million tons in June according to industry sources.

Sector Focus

Communication Services (-2.37%) and Consumer Discretionary (-1.89%) led Monday’s declines, while Healthcare (+0.44%) and Energy (+0.54%) posted gains. Technology managed a modest 0.37% advance despite broader market weakness.

Energy sector ETFs are under pressure in pre-market trading following oil’s overnight decline. Financial sector ETFs may benefit from rising rate expectations, while precious metals miners face headwinds from gold’s sharp selloff.

Earnings Spotlight

FedEx (FDX) headlines today’s earnings calendar with analysts expecting earnings per share of $6.02 on revenue of $24.28 billion. General Mills (GIS) is forecast to report EPS of $0.81 on revenue of $4.64 billion. Homebuilder KB Home (KBH) is expected to post EPS of $0.45 on revenue of $1.11 billion.

Biotech stocks DFTX and APGE were among Monday’s standout performers, surging 49.80% and 46.66% respectively on clinical trial developments.

Economic Calendar

No major economic data releases are scheduled for Tuesday, leaving investors to focus on geopolitical developments and corporate earnings results.

This article is generated from market data for informational purposes only. It does not constitute investment advice.