Key data releases and corporate earnings are due this week, while U.S.–Iran negotiations also influence market direction.

Investors are preparing for a shortened trading week packed with fresh economic data and major corporate earnings. Meanwhile, oil prices are moving sideways as the U.S. and Iran get set for another round of nuclear negotiations in Switzerland. Reports suggest Warner Bros. Discovery may revisit takeover discussions with Paramount Skydance, while both gold and Bitcoin are edging lower.

U.S. markets closed Monday

U.S. stock exchanges are shut Monday for a holiday, but attention later in the week will shift to key economic releases and a busy earnings calendar.

Wall Street ended Friday on a mixed note. Data showing U.S. inflation rose less than expected in January strengthened expectations that the Federal Reserve could begin cutting interest rates as early as June. Earlier, however, a strong labor market report had fueled speculation that the Fed — which reduced rates several times in 2025 — might delay further easing until the latter half of the year.

The Nasdaq Composite remained pressured, reflecting persistent concerns about disruption in the tech and communications sectors from emerging artificial intelligence models. Investors are also questioning when heavy AI infrastructure spending by mega-cap companies will start generating meaningful returns.

Focus now turns to Friday’s release of the December personal consumption expenditures (PCE) price index, the Fed’s preferred inflation gauge, along with a preliminary reading of fourth-quarter U.S. GDP. Earnings reports this week include results from Walmart, Palo Alto Networks, Analog Devices, and Booking Holdings.

U.S.- Iran talks resume

The U.S. and Iran are set to hold a second round of discussions in Switzerland regarding Tehran’s nuclear program, following renewed talks earlier this month.

The diplomatic efforts come amid heightened tensions. Washington has deployed a second aircraft carrier to the Middle East and signaled it is prepared for prolonged military action if negotiations collapse. U.S. President Donald Trump has warned Tehran to accept a deal or face further military consequences.

Iranian officials said over the weekend they are open to compromising on their nuclear activities in exchange for relief from stringent U.S. sanctions, adding that the next move rests with Washington.

Analysts at ING noted that significant geopolitical risk remains priced into markets due to uncertainty around how the situation unfolds.

Oil prices were largely steady in European trading Monday, with holiday closures in the U.S. and China dampening activity. Weak Japanese growth data also raised concerns about slowing demand. Brent crude for April hovered near $67.72 per barrel.

Warner Bros. considers renewed talks

Reports indicate a new development in the takeover saga involving Warner Bros. Discovery.

According to Bloomberg, the company is weighing whether to reopen negotiations with Paramount Skydance after David Ellison’s studio group enhanced its hostile bid. Board members are reportedly evaluating whether Paramount’s proposal is more attractive than a competing offer from Netflix.

Last week, Paramount pledged to increase the cash component for each quarter a deal is not finalized in 2026 and to cover any penalties Warner Bros. would incur for exiting its current agreement with Netflix. However, it did not raise its base offer of $30 per share.

Gold retreats

Gold prices slipped below key levels in European trade as the U.S. dollar stabilized following inflation data. Precious metals have been volatile in recent weeks, with both gold and silver remaining well below their late-January highs.

Spot gold fell 0.9% to $4,998.69 per ounce, while April gold futures declined 0.6% to $5,018.69. Despite recent losses, safe-haven demand linked to U.S.-Iran tensions and prior dollar weakness had supported prices last week.

Bitcoin declines

Bitcoin extended its downturn after four consecutive weeks of steep losses. The cryptocurrency briefly approached $70,000 over the weekend before retreating 3.1% to $68,624.6. It has now erased roughly half its value since reaching a record near $126,000 in October.

Separately, Strategy — the largest corporate holder of Bitcoin — said it could still meet its debt obligations even if Bitcoin were to fall to $8,000. The company holds 714,644 Bitcoin, funded through a combination of equity issuance and long-term debt.

Sources: Scott Kanowsky