Stock futures little changed after losing week

Stock futures hovered near the flatline on Monday evening, signaling a cautious start to the trading week after Wall Street closed out a losing week on Friday. The muted moves came as investors weighed rising geopolitical tensions in the Middle East and a busy week of corporate earnings reports.

Futures tied to the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 were all little changed in overnight trading. The lack of direction follows a week that saw major averages decline, with the S&P 500 and Nasdaq posting their worst weekly performances in months. The downturn was driven by a combination of profit-taking after a strong first half and concerns over elevated valuations.

Geopolitical risks escalated over the weekend after Iran launched a series of strikes on Israeli positions, according to reports. Oil prices climbed in response, with Brent crude rising above $85 per barrel, adding to inflationary pressures that could influence Federal Reserve policy. The developments come as traders await key earnings reports from major companies including Goldman Sachs, Bank of America, and Netflix later this week.

On the economic front, data on retail sales and industrial production are due this week, which will provide further clues on the health of the economy. The Fed has signaled it remains data-dependent, and any signs of persistent inflation could delay rate cuts that markets have been pricing in.

The losing week erased some of the gains from earlier in the year, but the S&P 500 remains up roughly 15% year-to-date. Analysts expect volatility to persist as earnings season unfolds and geopolitical risks evolve. Investors will be closely watching the Fed's next meeting later this month for any shift in policy stance.