By Mike Murphy
A ship sits anchored on Saturday in the Strait of Hormuz near Larak Island, Iran.
U.S. stock-index futures fell and crude prices rose on Sunday, after the market's rally stalled last week as oil prices rose sharply amid the impasse in the war with Iran.
Dow Jones Industrial Average futures (YM00) fell about 100 points, or 0.2%, late Sunday, S&amp;P 500 futures (ES00) and Nasdaq-100 futures (NQ00) slipped fractionally. West Texas Intermediate crude (CL.1) jumped nearly 2%, above $107 a barrel. Bitcoin (BTCUSD) was last trading around the $78,000 level, after falling more than 4% over the past five days.
U.S. stocks closed sharply lower Friday, with the Dow DJIA and Nasdaq COMP logging modest weekly losses. Still, the Nasdaq hit another new record high earlier last week, along with the S&amp;P 500 SPX, which eked out gains for the seventh straight week, and is up more than 8% year to date.
Oil prices shot higher Friday as President Donald Trump ended his trip to China with no apparent breakthroughs. West Texas Intermediate crude for June delivery (CLM26) rose above $105 a barrel Friday, while Brent for July delivery (BRNN26) (BRN00), the global benchmark, closed above $109 a barrel, after rising 8% on the week.
While the cease-fire in the Persian Gulf appears to be largely holding, cracks are starting to appear as the impasse over the Strait of Hormuz continues. The Associated Press reported Sunday that Israel is coordinating with the U.S. over a possible resumption of airstrikes against Iran, and in a social-media post Sunday, Trump warned Iran to agree to a peace deal, or else. &#34;The Clock is Ticking, and they better get moving, FAST, or there won't be anything left of them,&#34; he said. Diplomats are reportedly continuing to work on an agreement, but the two sides still appear far apart.
Also on Sunday, a drone strike - suspected to be either Iranian or from an Iranian-backed militia - caused a fire near a nuclear power plant in the United Arab Emirates. The UAE said the reactor was not affected and the plant was operating as normal. The facility produces about a quarter of the UAE's energy, the AP reported.
The conflict has sent oil and gas prices soaring worldwide. As of Sunday, the average gallon of gas in the U.S. was $4.51, according to AAA. That has driven worries of rising inflation, as the cost of fuel trickles down to consumers through virtually every industry. Inflation rose to 3.8% in April, according to the Consumer Price Index released last week. That was the highest reading since May 2023, and far above the Fed's 2% target.
A slew of quarterly earnings reports due this week from major retailers should shed more light onto the state of consumer spending. Walmart (WMT), Target (TGT), Ross Stores (ROST), Home Depot (HD) and Lowe's (LOW), among others, are set to report. Walmart executives warned earlier this year that gas prices between $4.50 and $5 a gallon could impact retail sales.
Investors will also be eagerly awaiting quarterly earnings from Nvidia (NVDA) on Wednesday. While the chip-making giant's shares have lagged its rivals this year amid a boom in AI-related stocks, Nvidia is still the biggest single contributor to the S&amp;P 500's earnings growth, according to Jonathan Golub, chief equity strategist at Seaport Research.
Read more: Nvidia is getting some help as it props up S&amp;P 500 earnings growth
-Mike Murphy
This content was created by MarketWatch, which is operated by Dow Jones &amp; Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
05-17-26 1818ET

U.S. stock futures declined while oil prices rose amid ongoing tensions in the Iran conflict. Dow futures fell 0.2%, and West Texas Intermediate crude jumped nearly 2% to over $107 a barrel. The conflict has raised concerns about inflation, with gas prices averaging $4.51 per gallon. Major retailers, including Walmart and Target, are set to report quarterly earnings this week, which may provide insights into consumer spending affected by rising fuel costs.

- U.S. stock-index futures declined as crude prices increased, attributed to tensions in the Strait of Hormuz amid ongoing conflict with Iran.  
- The rise in oil prices has heightened concerns about inflation, with gas prices averaging $4.51 per gallon and inflation at 3.8% in April, exceeding the Fed's target.  
- Upcoming quarterly earnings reports from major retailers and Nvidia are anticipated to provide insight into consumer spending and overall market performance.

Dow Jones

Target

Occidental Petroleum

Walmart

SPDR O&G Ex & Prd

United States Oil Fund LP

ISHRS S&P Glb Engy

iShares US Consumer Staples ETF

SPDR S&P Retail ETF

VanEck Oil Refiners ETF

iShares US Oil Equip & Svcs

SPDR O&G Equip

VanEck Oil Services ETF

iShares US Oil & Gas Expl & Prod

VG Energy

VanEck Retail ETF

Pro Ultr Bloomberg Crude Oil

SPDR Energy Select

SPDR FD Consumer Staples

Us Brent Oil

ProShares Ultra Consumer Staples

Dow Jones Industrial Average

S&P 500

NASDAQ-100

NASDAQ Composite Index

Ross Stores

Home Depot

Lowes

NVIDIA

NVIDIA Corporation

U.S. stock futures slip, oil prices push higher as Iran war remains stuck in stalemate