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Oil Outlook Darkens Wall Street Pre-Bell; Asia, Europe Off

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Wall Street futures pointed moderately lower pre-bell Monday as traders assessed the still-closed Strait of Hormuz, and media reports of possible renewed military actions by the US against Tehran.

In the futures, the S&P 500 fell 0.4%, the Nasdaq declined 0.3%, and the Dow Jones was off 0.6%.

West Texas Intermediate crude oil traded up 1.4% at $102.45 a barrel, while 10-year US Treasuries offered 4.61%, the highest yield since early 2024.

On the earnings scene, AI-chip colossus Nvidia (NVDA) reports on Wednesday this week.

Other blue chips, including Walmart (WMT), Home Depot (HD), TJX (TJX), Lowe's (LOW), Target (TGT), Ross Stores (ROST), Analog Devices (ADI), Intuit (INTU), and Deere (DE), also report later this week.

Investors additionally await the release on Wednesday of minutes of the Federal Reserve's latest policy session, and then the Thursday flash report from S&P Global on the US purchasing managers index (PMI) for May.

Asian exchanges traded mostly lower overnight on higher crude prices and a slate of soft economic releases from Beijing. European bourses tracked moderately south midday on the continent.

Dominion Energy (D) shares traded up 14.3% pre-bell after media reports of a possible buyout of the power and gas utility by NextEra Energy (NEE), an electrical utility.

On the economic calendar is the NAHB housing market index for May at 10 am.

Cheryl Venable, acting President of the Federal Reserve Bank of Atlanta, is slated to speak on Monday.

In pre-market action, Bitcoin traded at $76,802, and spot gold commanded $4,536 an ounce.

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