Trump's Hormuz Strait deadline approaches, Wall Street futures dip slightly

Investing.com- U.S. stock index futures edged lower late on Monday. Investors remained cautious, focusing on President Trump’s final deadline for Iran to reopen the Strait of Hormuz after Tehran rejected a ceasefire proposal.

As of 20:15 U.S. Eastern Time (00:15 GMT), S&P 500 index futures fell 0.2% to 6,640.50. Nasdaq 100 index futures fell 0.3% to 24,290.75. Dow Jones futures were roughly flat at 46,937.0.

Wall Street had risen earlier in the day, with the Dow Jones Industrial Average up 0.4%, the S&P 500 up 0.5%, and the Nasdaq Composite up 0.5%.

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Iran Rejects Ceasefire Proposal; Trump’s Final Deadline Nears

Investor attention remains centered on the rapidly evolving situation in the Middle East, where diplomatic efforts appear to be running into setbacks.

A proposal drafted by regional mediators backed by the U.S., including Pakistan, Egypt, and Turkey, calls for a 45-day ceasefire and the reopening of the Strait of Hormuz, a key passage for global oil shipments.

However, Iran rejected the proposal, insisting on a permanent end to the conflict, including binding assurances to prevent future attacks, lifting sanctions, compensation for war losses, and broader regional reconciliation.

Meanwhile, ahead of the deadline, Trump escalated his rhetoric, warning that if the demands were not met by 8:00 p.m. U.S. Eastern Time on Tuesday, it could trigger large-scale strikes by the U.S. on Iran’s infrastructure, including power plants and bridges.

The Strait of Hormuz typically handles about one-fifth of global oil flows, and it has remained disrupted during the conflict, driving a sharp rise in crude oil prices and heightening inflation concerns.

ISM Services PMI Slightly Below Expectations

Data released on Monday showed that the U.S. services sector lost some momentum in March.

The Institute for Supply Management said its non-manufacturing PMI fell from 56.1 in February to 54.0, below the 54.8 forecast, though it remained above the 50 level separating expansion from contraction.

The report pointed to a complex macro backdrop, with slowing business activity and weak employment, even as demand indicators such as new orders stayed relatively firm.

More notably, the prices paid index surged sharply, posting the largest increase in more than 13 years, highlighting that inflation pressure tied to rising energy costs and supply disruptions is intensifying.

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