U.S. Stock Market on Monday: Dow Jones, S&P 500, Nasdaq trading to be dictated by these factors

Dow futures were down, S&P 500 futures and Nasdaq futures were little changed, as markets braced for more than 100 earnings reports this week. Companies reporting ⁠include Advanced Micro Devices, Super Micro Computer Inc, Palantir, Walt Disney and McDonald’s. The S&P 500 and the Nasdaq advanced to record closing highs on Friday, boosted by robust earnings and a dip in crude prices, and turning the page on their biggest monthly percentage gains in years. The Dow Jones Industrial Average fell 152.87 points, or 0.31 per cent, to 49,499.27, the S&P 500 gained 21.11 points, or 0.29 per cent, to 7,230.12 and the Nasdaq ‌Composite gained 222.13 points, or ⁠0.89 per cent, to ⁠25,114.44.

Global shares edged higher while oil prices flatlined in Asia on Monday, as investors drew comfort from signs of patchy progress in settling the Middle East conflict at the start of a week packed with earnings and key economic data. A holiday in Japan made for thin trading conditions, leaving Nikkei futures up only modestly at 59,630 versus a cash close of 59,513. MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.6 per cent, ⁠while South ‌Korean stocks returned from holiday with a jump of 2.6 per cent.

Strait of Hormuz

President Donald Trump said the United States would begin an effort to free up ships stranded in the Strait of Hormuz on Monday morning, but gave no details of the plan.

A statement from Central Command said ‌support would include guided-missile destroyers, ⁠over 100 ⁠land and sea-based aircraft and 15,000 service members.

Iran earlier said that the U.S. had responded to its 14-point proposal via Pakistan and that it was reviewing the response, though Trump said it was ​unlikely to be acceptable.

International Oil Prices

Brent crude futures were flat at $108.30 per barrel, having recovered from an initial drop of more than 2 per cent, while U.S. crude was steady at $102.01.

Dealers ​noted a bulk carrier had reported being attacked by multiple small craft while transiting Iran’s Sirik on Sunday, and it was not clear how many ships would try and run the Strait of Hormuz even with Navy protection.

AI Capex Investment

Concerns remained about the scale of AI capex investment which was now up at $751 billion for 2026, $80 billion above estimates at the start of the earnings season and 83 per cent above spending in 2025.

The threat of oil-driven inflation had also lifted bond yields in a challenge to equity valuations, while several major central banks had turned hawkish on policy.

Markets implied just 2 basis points ‌of easing from the Federal Reserve by year-end compared to 11 basis points a week ago. Expectations for the European Central Bank had climbed to 76 basis points of hikes, with the Bank of England on 63 basis points.

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