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Stocks Down Pre-Bell as Traders Assess US-Iran Deal Progress, Await Key Inflation Report

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Stocks Down Pre-Bell as Traders Assess US-Iran Deal Progress, Await Key Inflation Report

The benchmark US stock measures were pointing lower before the opening bell Monday as investors monitored US-Iran peace talks and awaited a key inflation report later in the week.

The S&P 500 declined 0.2%, the Dow Jones Industrial Average edged down 0.1% and the Nasdaq was slightly in the red in premarket activity. The indexes finished Thursday's trading session in the green.

US markets were closed Friday for the Juneteenth National Independence Day holiday.

Mediators Pakistan and Qatar said in a joint statement on Sunday that the US and Iran made "encouraging progress" in the first session of high-level discussions under the memorandum of understanding signed between the two countries last week. The talks took place in Switzerland.

The mediators said the US and Iran created "a mechanism for further technical talks" and agreed to establish a high-level committee to oversee the mediation process. "The high level committee has agreed upon a roadmap towards reaching a final deal within 60 days," the statement said.

Earlier on Sunday, President Donald Trump in a social media post threatened renewed military action against Iran if it didn't "immediately stop their highly paid proxies in Lebanon from causing trouble."

Iran reportedly said on Saturday that it closed the Strait of Hormuz again following Israel's attacks on southern Lebanon, according to various media outlets.

West Texas Intermediate crude oil nudged 0.5% higher to $77 a barrel before the open, while Brent decreased 1.7% to $79.20.

With no economic reports scheduled for Monday, traders await the personal income and outlays report for May, scheduled to be released on Thursday. The report includes the personal consumption expenditure core price index, the Federal Reserve's preferred inflation metric.

Last week, the Fed kept its monetary policy steady, its fourth consecutive pause, removing the so-called easing bias from its statement, while raising its interest rate expectations through 2028.

The final estimate report of the first-quarter gross domestic product is also due on Thursday.

Treasury yields rose in premarket action, with the two-year rate increasing 4 basis points to 4.22% and the 10-year rate inclining 3.4 basis points to 4.48%.

Shares of Micron Technology (MU) rose 3.3% pre-bell with the company expected to report its latest financial results later in the week. Intel (INTC) gained 4.2% and Sandisk (SNDK) added 3.8%.

Gold slipped 0.4% to $4,228 per troy ounce, while bitcoin inched up 0.1% to $64,182.

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