S&P 500 Flat as Traders Eye US-Iran Deal and FOMC Decision Impact

The S&P 500 traded in a muted fashion on Monday as market participants adopted a wait-and-see approach ahead of two major catalysts: details surrounding a potential US-Iran deal and the upcoming FOMC interest rate decision. The US Dollar Index futures remained relatively steady as traders assessed the geopolitical implications of the Iran negotiations, which could significantly impact crude oil markets and, by extension, broader risk sentiment and dollar dynamics. Both Brent and WTI crude oil futures remained in focus, with any resolution in US-Iran tensions potentially triggering a decline in energy prices and easing inflationary pressures. This scenario could influence the Federal Reserve's rate calculus under new Chair Kevin Warsh's leadership. Market participants are largely sidelined, unwilling to establish significant positions ahead of the FOMC statement. The interplay between geopolitical developments and monetary policy direction is expected to define near-term price action across forex and equity markets, with the dollar particularly sensitive to both outcomes.