US stock futures rise as oil prices tumble ahead of busy earnings week and Fed decision
Investors brace for the busiest earnings week of the quarter, featuring major technology firms and a Federal Reserve interest rate decision, as oil prices fall nearly 7% following a pause in hostilities between the US and Iran.
US stock futures rose on Monday morning, driven by a sharp decline in energy costs and renewed geopolitical stability. The Dow Jones Industrial Average and S&P 500 futures both gained 0.8%, while contracts for the Nasdaq-100 jumped approximately 1.6%, recovering from a choppy week that had seen indexes lower.
The rally was underpinned by a nearly 7% tumble in oil prices following reports of a pause in hostilities between the US and Iran. Brent crude futures traded below $86 a barrel at the last check, as markets reacted to optimism about a pathway to end the conflict and potentially reopen the Strait of Hormuz.
A sustained drop in oil prices may alleviate some pressure on the Federal Reserve, which is scheduled to deliver its interest rate decision on Wednesday. The central bank is widely expected to hold rates steady as officials continue to monitor inflation progress, although a rate hike remains a possibility in what is described as one of the least-telegraphed Fed decisions in recent years.
Market participants are now turning their attention to the busiest earnings week of the quarter. The calendar opens with reports from AstraZeneca and Nucor Corporation, before moving into the heavyweights of the technology sector. Investors are closely watching capital expenditure guidance and artificial intelligence monetisation strategies from Microsoft, Meta Platforms, Apple, and Amazon, following volatility triggered by recent spending disclosures from Alphabet and Tesla.
The earnings slate also includes SK Hynix, Coca-Cola, Starbucks, Procter & Gamble, and Arm Holdings. The week’s reporting season is set to conclude with energy giants ExxonMobil and Chevron, as traders assess corporate performance against the backdrop of shifting macroeconomic conditions.
