Investors face a holiday-shortened week with key economic data and corporate earnings on the horizon, while geopolitical tensions simmer. U.S. markets close Monday for Presidents Day, with traders awaiting fresh inflation data and quarterly results from major companies like Walmart and Netflix. The week's economic calendar includes the crucial PCE price index and Q4 GDP figures.

The U.S.-Iran nuclear negotiations resume in Switzerland this week, adding uncertainty to oil markets already grappling with rangebound prices around $67.72 per barrel. While Tehran signals willingness to compromise on its nuclear program in exchange for sanctions relief, Washington maintains military pressure with a second aircraft carrier deployed to the Middle East. Analysts warn that significant risk premiums remain priced into markets amid ongoing diplomatic uncertainty.

Meanwhile, Warner Bros. Discovery is reportedly reconsidering its position in the Paramount takeover saga, potentially reopening talks with Skydance Media after David Ellison's group sweetened its hostile bid. The entertainment industry watches closely as Paramount has promised additional cash to Warner Bros. shareholders for any delays in deal completion, though the core $30-per-share offer remains unchanged. Elsewhere, Bitcoin extended its recent slump, falling 3.1% to $68,624.6 after briefly touching $70,000 over the weekend.