(Il Sole 24 Ore Radiocor) - Milano, 11 mag - US shares were trading flat as investors tracked developments in the Gulf after president Donald Trump's rejection of Iran's latest peace proposal.

In a social media post yesterday, Trump said Iran's new peace proposal was 'totally unacceptable', leaving the two sides at loggerheads and casting uncertainty over when the Strait of Hormuz may reopen again.

Oil prices jumped after the announcement but then pared gains.

Investors are concerned high oil prices will trigger inflationary pressure and prompt the Federal Reserve to delay interest rate cuts. The market this week will focus on April consumer and producer price indexes which could offer clues as to where inflation may be heading.

On the stocks front, shares in Moderna were down 1.63% after the biomedical company said it has been researching vaccines to protect against hantaviruses while shares in chipmakers Intel and Micron Technology were up 0.6% and 6.6%, respectively, as AI-related stocks continued to shine.

At 1722 GMT, the Dow Jones was losing 1.48 points, or 0.00%, at 49,607.68 points.

The S&P 500 was 12.75 points, or 0.17%, higher at 7,411.68 points.

The Nasdaq was gaining 13.53 points, or 0.05%, at 26,260.61.

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(RADIOCOR) 11-05-26 19:34:30 (0632) 5 NNNN