Hormuz Reopening, Inflation Data to Steer Wall Street

Wall Street is poised for a lukewarm start on Monday as investors grapple with the reopening of the Strait of Hormuz and its potential impact on oil prices.

The agreement between Iran and Oman to reopen the shipping lane could ease elevated oil prices, which in turn may prevent aggressive central bank rate hikes. However, the demand for US compliance from both countries adds a layer of complexity to this situation.

The Federal Reserve's stance is also expected to be influenced by upcoming economic data, particularly inflation figures. Key policymakers like Cleveland Fed President Beth Hammack will weigh in on this matter, providing valuable insights into the central bank's future decisions.