Futures for the Dow Jones Industrial Average surged over 500 points, representing an increase of about 1%, while S&P 500 futures climbed by 0.6%. Nasdaq-100 futures saw an uptick of around 0.4% in early trading, creating a positive atmosphere for Wall Street at the onset of August after major indices concluded July on a strong note.
On Sunday, August 2, Trump indicated that he had scrapped a proposed attack on Iran, stating that negotiations between Washington and Tehran would begin again on Monday. This announcement came in the wake of media reports from the previous week, which suggested the US was gearing up for a new round of strikes as hopes for a diplomatic resolution faded, thereby pushing crude prices upward.
US benchmark West Texas Intermediate (WTI) crude plummeted over 6% to $79.10 per barrel, while global benchmark Brent crude fell more than 5% to $82.99 per barrel as of 8:00 a.m. ET, reversing some of the recent gains prompted by geopolitical tensions.
Treasury yields also dipped as reduced fears regarding energy-driven inflation increased interest in government bonds. The benchmark 10-year Treasury yield decreased by about 6 basis points to 4.68%.
In terms of individual stocks, US-listed shares of Alibaba rose in premarket trading after the Chinese tech giant introduced a new artificial intelligence model.
Investors are gearing up for another packed week of corporate earnings. Palantir Technologies is set to release its quarterly results on Monday, while attention will also draw to SpaceX’s first earnings report since its public listing. On the macroeconomic side, markets will keep a close eye on a series of US labor market reports this week, culminating in Friday’s critical non-farm payrolls and unemployment data, which could offer new insights into the state of the economy and the Federal Reserve’s policy direction.
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