Iran demands, Berkshire Hathaway results and U.S. inflation shape market sentiment: Dow Jones, S&P, Nasdaq, Wall Street Futures
Fiona CraigMon, August 10, 2026 at 12:06 PM GMT+3 4 min read
U.S. stock futures were mixed but generally positive on Monday as investors weighed diminishing prospects for a rapid resolution to the Iran conflict against expectations for important U.S. inflation data later this week. Markets were also digesting Berkshire Hathaway's (NYSE:BRK.B) latest results, which showed new chief executive Greg Abel beginning to deploy more of the conglomerate's enormous cash reserves into equities.
U.S. futures edge higher after weak jobs report
S&P 500 and Nasdaq 100 futures moved modestly higher, while Dow futures were slightly weaker as traders assessed developments in the Middle East and looked ahead to Wednesday's U.S. Consumer Price Index report.
By 03:05 ET (07:05 GMT), Dow futures were down 25 points, or 0.1%, while S&P 500 futures gained 8 points, or 0.1%. Nasdaq 100 futures performed more strongly, rising 86 points, or 0.3%.
Wall Street's major indices advanced on Friday after employment figures showed the U.S. economy unexpectedly lost 23,000 jobs in July. Data for the previous two months was also revised substantially lower, raising fresh questions over the resilience of the labour market.
Investors interpreted the weaker employment picture as reducing the likelihood of the Federal Reserve raising interest rates next month. U.S. government bond yields subsequently declined, while the dollar weakened following the report.
Iran sets conditions for reopening the Strait of Hormuz
Geopolitical uncertainty remained a significant influence on markets after Iran outlined a series of conditions it says must be satisfied before the Strait of Hormuz can fully reopen.
According to Iranian state news agency IRNA, the secretary of Iran's Supreme National Security Council said Washington would need to permanently end the war, remove the naval blockade, eliminate sanctions, release frozen Iranian assets and pay war reparations. Iran is also demanding an end to threats and insults as well as U.S. military operations against Tehran's allies.
The conditions highlight the strategic importance of the Strait of Hormuz in Iran's continuing confrontation with the U.S. and Israel. The waterway handles approximately one-fifth of global oil and liquefied natural gas supplies, meaning continued restrictions on tanker traffic could have significant consequences for energy markets and the wider global economy.
Oil prices strengthened against this backdrop. Brent crude futures rose 0.5% to $83.95 per barrel by 03:23 ET after experiencing significant volatility throughout the conflict.
Berkshire Hathaway puts more cash to work
Berkshire Hathaway (NYSE:BRK.B) reduced its record cash holdings to $364.7 billion during the second quarter as chief executive Greg Abel increased investment activity and the conglomerate reported a doubling of net profit.
Abel, who succeeded Warren Buffett as chief executive at the beginning of the year, oversaw Berkshire becoming a net buyer of equities for the first time in 15 quarters. The company deployed billions of dollars into existing major holdings, including Google parent Alphabet.
Berkshire also repurchased $4.53 billion of its own shares during the three months to June, representing a significant acceleration from the relatively limited activity recorded during the first quarter.
The conglomerate had resumed share buybacks during the opening three months of the year after going more than a year without repurchasing its own stock.
U.S. inflation report becomes the next major test
Investors are now preparing for Wednesday's U.S. Consumer Price Index release, which could play an important role in shaping expectations for the Federal Reserve's next policy decisions.
Headline CPI inflation is forecast to ease slightly to 3.4% year-on-year in July from 3.5% previously. Energy prices remain an important component of the inflation outlook after gasoline costs increased following the start of the Iran conflict in late February.
Core CPI, which excludes volatile food and energy costs, is expected to moderate to 2.5% from 2.6%.
Vital Knowledge analysts noted that inflation at these levels would remain well above the Federal Reserve's target. Policymakers therefore face a difficult balance between controlling persistent price pressures and avoiding additional damage to an economy where the labour market is beginning to show signs of weakness.
China inflation slows more than expected
China also delivered softer inflation figures, with consumer price growth slowing more sharply than economists had anticipated in July while factory-gate deflation moderated.
Official National Bureau of Statistics data showed consumer prices increased 0.5% year-on-year, down from 1.0% in June and marking the weakest annual increase in six months. Economists had expected inflation of 0.8%.
On a monthly basis, CPI declined 0.1%, compared with forecasts for a 0.2% increase and following a 0.3% fall in June.
ING analysts highlighted a particularly significant shift in transportation fuel inflation, which slowed to 0.8% year-on-year in July from 15.3% in June.
"Other than volatility in energy prices, we continue to see the main drags on inflation coming from food and rent," analysts wrote.
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