An inflatable effigy of Elon Musk protesting his AI chatbot Grok stands in New York's Times Square on June 11. US stocks are heading for a quiet open after the long weekend, with equities finding little support from lower oil prices amid signs of diplomatic headway between the US and Iran.S&P 500 futures fell 0.1%. Brent crude dropped 1.9% toward $79 a barrel as Vice President JD Vance said US negotiators made a lot of progress in their talks with Iran. Treasuries fell across the curve after Friday’s cash-market holiday. The dollar edged 0.1% higher.Traders also followed the latest developments in UK politics as Prime Minister Keir Starmer announced his resignation outside 10 Downing Street. The pound erased losses after briefly touching a 2026 low, while gilts rallied as an orderly leadership transition took shape.Oil traders took comfort from evidence of progress in Middle East talks even as President Donald Trump threatened to strike Iran if Hezbollah militants continue to attack Israel. Vance said the warring sides set up a mechanism to keep the Strait of Hormuz open, while Iran agreed to invite nuclear inspectors.“Even during the midst of the conflict in the Middle East, equities still priced a positive outcome,” said Stephan Kemper, chief investment strategist at BNP Paribas Wealth Management. “It seems logical that markets don’t rally too hard on something which they had already priced to a fair degree.”In the UK, the departure of Starmer is putting Britain on course for its seventh premier in a decade and paving the way for Andy Burnham to replace him. The former mayor of Manchester announced his candidacy hours after Starmer’s resignation and received the backing of Wes Streeting, a potential rival.Starmer said nominations for a new Labour leader will open July 9 and that a contest will be finalized by Sept. 1. The question for investors is about the impact on the UK’s finances if Burnham were to become prime minister.“Markets would be watching for Burnham’s pick of Chancellor,” wrote Mohit Kumar at Jefferies. “The fear is that Burnham’s policies are left-leaning and if the new chancellor is not credible, it would raise concerns over deficits and borrowing.”SpaceX shares slid more than 5% in premarket trading, putting the stock on pace for a third straight loss. Chipmakers including Intel Corp. rallied. Getty Images Holdings Inc. soared more than 300% after inking a display partnership with ChatGPT owner OpenAI.Bond traders, recently forced to reposition for the possibility of higher interest rates ahead, are looking to Thursday’s US personal consumption expenditures price index for a read on whether the market’s hawkish stance is warranted.Forecasters expect the index, the Federal Reserve’s favorite inflation gauge, to show acceleration on both a monthly and year-over-year basis in May. Fed Governor Christopher Waller is due to speak later on Monday. (Bloomberg)