Stock market today: Dow, S&P 500, Nasdaq futures drift ahead of Warsh's first Fed meeting as chair

A record-setting rally in Wall Street stocks faltered on Tuesday as hopes faded for a swift return of Hormuz oil flows and focus turned to the Federal Reserve's policy meeting.

Dow Jones Industrial Average futures (YM=F) nudged up 0.1% after soaring to an all-time closing high on Monday as markets celebrated a US-Iran peace deal . Contracts on the S&P 500 (ES=F) traded flat, while those on the tech-heavy Nasdaq 100 (NQ=F) rose 0.1%.

Markets are digesting warnings that Friday's Strait of Hormuz reopening promised by the US-Iran agreement isn't likely to be easy, and it could take months for oil shipments to ramp up. Uncertainty over the deal's details, which have yet to be released, is also cooling optimism. However, US officials have said commercial traffic will be allowed to use the waterway without tolls.

That provides a complicated backdrop to the Fed meeting, with recent inflation reports running hotter than expected as the war with Iran pushed energy prices higher. Its counterpart the Bank of Japan on Tuesday raised its benchmark interest rat e to a 31-year high to counter those price pressures.

Officials will begin their June meeting on Tuesday, ahead of Wednesday's closely watched rate decision — the first under Trump-backed Chair Kevin Warsh . While the Fed is overwhelmingly expected to hold rates steady this time, many on Wall Street expect a shift toward hikes this year in the "dot plot" of policymakers' expectations.