US STOCKS-Wall St set for tepid open as investors weigh US-Iran conflict before earnings rush

​Brent crude futures were trading about 1% higher on Monday and are 46.7% above pre-war levels. Investors will also hear from Federal Reserve policymakers, who will ⁠gather in Washington this week in what may be Jerome Powell's last meeting as head of the U.S. central bank.

Wall Street's main indexes ‌were ​set for a muted open on Monday as peace talks between the U.S. and Iran stalled, while investors awaited a flood of earnings as well as commentary from the Federal Reserve meeting this week. U.S. President Donald ‌Trump canceled a visit by two U.S. envoys to Pakistan, dealing a new blow to peace prospects. With an agreement to end the war still out of reach, investors have drawn reassurance from solid earnings so far.

Of the 139 companies in the S&P 500 that reported results as of Friday, 81.3% surpassed earnings expectations, ‌compared with the prior four-quarter average of 78.1%, according to data from LSEG. However, some analysts have questioned how dependable the results are as a guide ‌to future performance, since they reflect only one month of disruption linked to the Middle East war.

At 8:42 a.m. ET, Dow E-minis were down 67 points, or 0.14%, S&P 500 E-minis were down 8 points, or 0.11%, and Nasdaq 100 E-minis were down 33.75 points, or 0.12%. "While earnings are now demanding a lot of focus from investors, certainly the constant drumbeat ⁠in the ​background is the Iranian conflict," said Peter ⁠Andersen, founder at Andersen Capital Management.

"There doesn't seem to be any progress on a resolution. Once the earnings period is over, investors probably will start to refocus on the Iranian conflict and ⁠what it means in the long-term impact for the equity markets." The trajectory of oil prices remains the biggest unknown, as the crucial Strait of Hormuz is still closed. ​Brent crude futures were trading about 1% higher on Monday and are 46.7% above pre-war levels.

Investors will also hear from Federal Reserve policymakers, who will ⁠gather in Washington this week in what may be Jerome Powell's last meeting as head of the U.S. central bank. Republican Senator Thom Tillis said on Sunday he would allow the Senate ⁠confirmation ​of Fed chair nominee Kevin Warsh to go forward, after the Department of Justice dropped an investigation into Powell that Tillis said was a threat to the central bank's independence.

"With those obstacles now removed, the path appears clearer for Warsh's confirmation ahead of the next policy meeting (in June)," said Jefferies' chief ⁠U.S. economist Thomas Simons. A Reuters poll of economists last week showed that the Fed is expected to wait at least six months before cutting ⁠interest rates this year.

In the premarket session, ⁠Qualcomm was up 9.1% after an analyst said OpenAI was working with the chip designer and Taiwan's MediaTek to develop smartphone processors. Domino's Pizza slipped 7.3% after the pizza chain missed first-quarter sales estimates.

Nvidia rose nearly 1% after jumping 4.3% ‌in the previous session. The ‌company has reclaimed a market valuation above $5 trillion.