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) rose 0.8%, while those on the S&P 500 (ES=F) alsogained 0.8%. Contracts for the Nasdaq-100 (NQ=F) jumped 1.4% after a choppy week that sent the indexes lower.
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. Oil prices tumbled as much as 6% amid renewed optimism about a pathway to end the war, with Brent crude futures last down over 5% to trade below $87 a barrel.
A 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.
Top of mind, meanwhile, will be a wave of earnings reports, 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.
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).
