The S&P 500 and Nasdaq Composite entered the new week following a solid performance, having reached fresh records on Friday.
US stock index futures showed mixed and volatile trading on Monday as investors navigated a standoff between the US and Iran. Concerns center on the Strait of Hormuz, a critical oil shipping route that has remained shut, contributing to a cautious market start.
Early Monday trading was impacted by reports that Iranian missiles hit a US Navy ship. While these reports cited the IRGC-aligned Fars News Agency, a senior US official denied that a ship was hit, which helped futures erase some of their earlier losses.
Despite continued uncertainty regarding the war in Iran, oil prices have fallen and S&P 500 futures rose slightly. Risk sentiment has improved based on progress toward a US-Iran deal and the prospects of shipping resuming through the Strait of Hormuz.