Wall Street set for subdued open after US-Iran talks in Pakistan failed to bear fruit

Wall Street’s main indexes are set to open lower after weekend talks between the US and Iran failed to deliver a deal to end the war, threatening a nascent recovery in equities and risking a renewed bout of volatility.

The declines indicate that any relief from the ceasefire reached last week could be fleeting, underscoring the risks of leaning too heavily into bullish bets when the geopolitical environment remains uncertain.

The main US stock indexes had logged their second consecutive week of gains on Friday on hopes that the peace talks in Pakistan would bear fruit.

Now, however, Dow E-minis YMcv1 has fallen 509 points, or 1.06%, as of 08:32 a.m. ET. S&P 500 E-minis EScv1 have dropped 43.25 points, or 0.63%, and Nasdaq 100 E-minis NQcv1 have dropped 157.5 points, or 0.62%.

Adding to the unease, the US military is hours away from beginning a blockade of all maritime traffic entering or leaving Iranian ports and coastal areas, in a move aimed at ramping up pressure on Tehran.