Wall Street steadies as Iran tensions, Fed and big tech earnings week collide

• The Strait of Hormuz, through which a significant portion of global oil flows, saw Iranian forces board two container ships, though Iran later submitted a proposal for reopening the strait
• Five of the Magnificent Seven technology companies report earnings this week alongside Wednesday's Fed policy decision
• Jerome Powell may chair his last Fed meeting before Kevin Warsh assumes leadership in May, following the Justice Department dropping its criminal probe into Powell

Market Summary: Wall Street Steadies Amid Geopolitical Tensions and Major Earnings Week

Market Overview:

Wall Street futures showed limited movement Monday as investors navigated escalating Iran tensions and prepared for a pivotal week featuring major tech earnings and a Federal Reserve policy decision. S&P 500 futures traded near flat, Nasdaq-100 futures gained 0.2%, while Dow futures declined approximately 60 points.

Geopolitical Developments:

Iran peace negotiations stalled over the weekend after President Donald Trump canceled plans to send envoys Steve Witkoff and Jared Kushner for in-person ceasefire talks, opting instead for phone negotiations. Iran's foreign ministry confirmed no meeting is currently scheduled. The Islamic Revolutionary Guard Corps boarded two container ships near the Strait of Hormuz, a critical chokepoint handling significant global oil traffic, driving oil prices sharply higher. However, an Axios report indicating Iran submitted a new proposal to reopen the strait provided some market relief, with analysts suggesting the conflict remains on a de-escalation path.

Key Events This Week:

Five of the Magnificent Seven technology companies are scheduled to report earnings this week, representing a critical test for market sentiment. Additionally, the Federal Reserve will announce its policy decision Wednesday, potentially marking Jerome Powell's final meeting as chair before Kevin Warsh assumes the role in May. This follows the Justice Department's decision to drop its criminal probe into Powell.

Market Implications:

The confluence of geopolitical uncertainty, crucial tech earnings, and Fed policy creates a high-stakes environment for investors. Oil price volatility stemming from Middle East tensions adds complexity to an already consequential week for markets.