By 01:40 ET (05:40 GMT) on Monday, S&P 500 Futures were down 0.7% at 6,806.25 points, Nasdaq 100 Futures fell 0.8% to 25,071.75 points, and Dow Jones Futures declined 0.7% to 47,806.0 points. Futures had earlier fallen more than 1% after President Trump announced a complete blockade of the Strait of Hormuz starting Monday morning.<\/p>\n
Losses were partly trimmed after U.S. Central Command clarified that the blockade would target only Iranian ships and ports. The measure is scheduled to begin at 10:00 ET on Monday. U.S. and Iranian officials had met in Pakistan over the weekend, but failed to reach an agreement, with Iran\u2019s nuclear activities and the full, toll-free reopening of the Strait of Hormuz remaining key sticking points.<\/p>\n
The breakdown in talks and the planned blockade signaled little immediate de-escalation in the conflict and implied continued disruptions in global oil and gas markets. Crude prices reacted sharply, with Brent crude rising back above $100 a barrel.<\/p>\n
The latest geopolitical developments came as Wall Street was already digesting a strong March consumer price index reading, which showed a sharp, energy-driven rise in U.S. inflation. Oil supply disruptions stemming from the Iran war were cited as a key driver, and markets were bracing for a continuation of this trend in the coming months.<\/p>\n
On Friday, major U.S. equity indexes ended mixed. The S&P 500 and the Dow Jones Industrial Average declined, while gains in chipmakers lifted the NASDAQ Composite. Semiconductor stocks were supported by strong March revenue figures from Taiwan Semiconductor Manufacturing Company (TSMC), which is due to report full first-quarter earnings later this week.<\/p>\n
The March CPI print reinforced concerns that increasingly sticky inflation could weigh on economic growth and keep the Federal Reserve from cutting interest rates this year. At the same time, investor attention is turning to the first-quarter earnings season. Goldman Sachs Group Inc is scheduled to report on Monday, followed by JPMorgan Chase & Co, Wells Fargo & Company, and Citigroup Inc on Tuesday.<\/p>\n
Why are U.S. stock futures declining on Monday?<\/strong> What does the Hormuz blockade involve?<\/strong> How is the conflict affecting oil and inflation?<\/strong> Which major companies are reporting earnings this week?<\/strong>
U.S. stock futures are falling due to heightened geopolitical tensions after ceasefire talks between the U.S. and Iran failed and President Trump ordered a blockade of the Strait of Hormuz, alongside concerns about rising, energy-driven U.S. inflation.<\/p>\n
The blockade, beginning at 10:00 ET on Monday, will target Iranian ships and ports in the Strait of Hormuz, according to U.S. Central Command.<\/p>\n
The conflict and planned blockade are disrupting global oil and gas markets, pushing Brent crude back above $100 a barrel and contributing to an energy-driven increase in U.S. inflation, as reflected in the March CPI data.<\/p>\n
Goldman Sachs Group Inc will report earnings on Monday, while JPMorgan Chase & Co, Wells Fargo & Company, and Citigroup Inc are scheduled to report on Tuesday. TSMC is also set to release its full first-quarter earnings later in the week.<\/p>\n