US stock futures surged on Monday morning as oil sank and markets entered the busiest week of the quarter, jam-packed with more Big Tech earnings and a Federal Reserve decision.
Futures on the Dow Jones Industrial Average (YM=F) Rise 0.8%
Futures on the Dow Jones Industrial Average (YM=F) rose 0.8%, while those on the S&P 500 (ES=F) also gained 0.8%. Contracts for the Nasdaq-100 (NQ=F) jumped 1.4% after a choppy week that sent the indexes lower.
Market Sentiment Gets a Lift
Market sentiment got a lift over the weekend as the US and Iran paused fighting, raising hopes that peace negotiations could restart after two weeks of attacks.
The continued decline in oil prices could take some pressure off the Federal Reserve, which is set to deliver an interest rate decision on Wednesday. The central bank is expected to hold rates steady as officials monitor progress on inflation, though a rate hike is not off the table in one of the least-telegraphed Fed decisions in years.
A wave of earnings reports is also on the horizon, including a host of Big Tech earnings from Microsoft (MSFT), Meta Platforms (META), Apple (AAPL), and Amazon (AMZN). All eyes will be on capital expenditure guidance and AI monetization after Alphabet’s (GOOG, GOOGL) and Tesla’s (TSLA) capex caused a meltdown in the tech sector.
Busy Week Ahead
Among other corporates, AstraZeneca (AZN) and Nucor Corporation (NUE) kick off the week’s earnings calendar, which features SK Hynix (SKHY), Coca-Cola (KO), Starbucks (SBUX), Procter & Gamble (PG), and Arm Holdings (ARM), and concludes with ExxonMobil (XOM) and Chevron (CVX).
The US and Iran’s pause in fighting has raised hopes that peace negotiations could restart, with oil prices tumbling as much as 6% amid renewed optimism about a pathway to end the war. Brent crude futures last traded below $87 a barrel, a decline of over 5%.
The busiest week of the quarter is set to be a pivotal moment for investors, with a wave of earnings reports and a Federal Reserve decision on the horizon. As the market enters this critical period, all eyes will be on the Dow Jones Industrial Average, the S&P 500, and the Nasdaq-100.
The Federal Reserve’s interest rate decision on Wednesday will be closely watched, with officials expected to hold rates steady as they monitor progress on inflation. However, a rate hike is not off the table, and investors will be watching closely for any signs of a change in policy.
