US Equity Futures Decline Slightly as Iran Peace Talks Fail

US equity futures are slightly lower as peace talks between the United States and Iran failed to produce an agreement. The breakdown is supporting higher prices in energy commodities and pushing up bond yields. Stocks have so far held steady despite the moves in oil and yields.

m. ET, S&P 500 and Nasdaq 100 futures were down fractionally. President Trump and Iran rejected each other’s latest proposals aimed at ending the 10-week conflict while both sides work to maintain a fragile ceasefire. Semiconductor stocks were higher in premarket trading after many closed at record highs on Friday.

Energy shares gained as investors used them as a hedge.

Bond yields rose worldwide on concerns about an oil-driven inflation shock and possible tighter monetary policy from central banks. The 10-year Treasury yield increased four basis points to 4.39 percent. The dollar gained 0.1 percent while gold fell below $4,700 per ounce. Silver outperformed gold, base metals rose and agricultural commodities were mixed.

Several individual stocks moved on corporate news. Babcock & Wilcox rose 12 percent after the power equipment company reported first-quarter revenue that grew 44 percent year-over-year and adjusted EBITDA that nearly quadrupled. Beazer Homes USA gained 22 percent as people familiar with the matter said Dream Finders Homes is close to announcing a $704 million offer to acquire the rival homebuilder.

Certara fell 5 percent after the biotech company cut its full-year adjusted earnings forecast and reported first-quarter adjusted profit that missed Wall Street expectations. Liquidia rose 7 percent after its first-quarter revenue exceeded the average analyst estimate.

Lumentum gained 4 percent after Nasdaq said the stock will join the Nasdaq 100 Index, replacing CoStar Group, prior to the market open on May 18. Moderna rose 8 percent following a 12 percent gain on Friday after the company said it is researching vaccines to protect against hantaviruses.

com soared 25 percent after the software company raised its full-year forecasts for revenue and adjusted operating profit and reported first-quarter results that beat expectations. Mosaic declined 3 percent after it forecast second-quarter phosphates sales volumes that missed analyst estimates.

Target Hospitality gained 11 percent after the modular housing provider raised its full-year sales forecast. Global equity markets are trading at record highs following a narrow rally led by technology companies supported by strong earnings and optimism around artificial intelligence.

Investors will monitor President Trump’s visit to China’s Xi Jinping this week for any influence on the Middle East conflict. The modest moves in futures come after six straight weeks of gains as traders assess the latest developments from the Iran conflict ahead of several economic reports.

m. ET. The week ahead features consumer price index, producer price index and retail sales figures. Bloomberg Economics expects the April consumer price index to show a monthly increase of 0.6 percent, moderating from March but still elevated. Core consumer price index strength is linked to a correction in shelter data rather than the conflict or tariffs.