US Futures Rise as Oil Eases Before Big Tech Earnings
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- US stock futures rose Monday morning, with Dow Jones Industrial Average futures up 0.2%, S&P 500 futures adding 0.3%, and Nasdaq-100 contracts popping nearly 0.7% following a volatile week that saw semiconductor stocks post losses.
- Alphabet, Intel, IBM, and Tesla are set to report quarterly results later this week, with Wall Street raising expectations as investors look for signs that Big Tech is monetizing AI alongside its massive build-out investments.
- The US-Iran war escalated over the weekend as the US engaged in its ninth straight day of attacks and Iran retaliated by bombing US allies in the region, primarily Kuwait, while the two sides remain far apart on a ceasefire.
- Oil prices reversed course after touching $90 a barrel, as Iran said diplomatic exchanges with the US would continue via mediators, which some traders read as leaving scope for fresh negotiations.
- Brent crude futures remain well below their April and May peaks, with energy markets potentially looking beyond the Strait of Hormuz toward alternative shipping routes for oil exports.
- The AI trade is searching for its next catalyst after a series of sector rotations in recent weeks, making this week's Big Tech earnings the key test of whether massive AI investments are translating into revenue.
Why it matters: The Nasdaq-100's 0.7% futures gain signals tech buyers are leaning in despite a ninth straight day of US-Iran hostilities and Brent crude touching $90, but the rally hinges on Alphabet, Intel, IBM, and Tesla proving this week that AI capex is converting to revenue. Iran's offer to keep talking via mediators is what let oil reverse, suggesting diplomacy remains the single biggest lever on energy prices and, by extension, on whether the AI trade can extend its leadership.
