- U.S. stock futures rose in premarket trading, with the Dow futures contract gaining 117 points, or 0.2%, and S&P 500 E-minis up 29.25 points, or 0.39%.
- Investor sentiment remains fragile as the U.S. continues its military actions against Iran, marking the ninth consecutive day of strikes.
- Attention is focused on a busy week of second-quarter earnings, with reports expected from major companies like Alphabet, Tesla, and Intel.
- Escalating tensions in the Middle East have kept risk appetite in check, with Iran claiming to have intercepted vessels in the Strait of Hormuz.
- The second-quarter earnings season is crucial as it could influence investor sentiment regarding the sustainability of the AI-driven market rally.
- Market analysts are concerned that the recent pullback in chip stocks may indicate that AI-linked gains have run too far.
U.S. stock index futures rose on Monday, following a pullback in chip stocks last week, as investors awaited a crucial week of earnings reports from major companies, including Alphabet, Tesla, and Intel.
The Dow E-minis were up 133 points, or 0.25%, while the S&P 500 E-minis gained 29.25 points, or 0.39%.
However, investor sentiment remained fragile due to ongoing tensions in the Middle East, particularly after the U.S. conducted a ninth consecutive day of strikes against Iran, which retaliated with attacks on critical infrastructure in the Gulf region.2
The Philadelphia SE Semiconductor Index, which had previously driven much of the market's gains, ended Friday more than 20% below its late-June record high, confirming a bear-market decline.
As the earnings season picks up, markets are also pricing in a 12% chance of a quarter-point rate hike at the Fed’s July meeting and a 53% chance of another hike in September, according to CME’s FedWatch tool.
Earlier, Brent crude rose above $90 a barrel for the first time since early June, reflecting concerns over supply disruptions amid the escalating conflict.
Domino’s Pizza gained 6.5% after its quarterly revenue surpassed Wall Street estimates, showcasing some resilience in the consumer sector amidst broader market uncertainties.
“Dow E-minis rose 133 points, S&P 500 E-minis gained 29.25 points, and Nasdaq 100 E-minis climbed 228.5 points in early premarket trading. Brent crude topped $90 a barrel as Iran tensions escalated, while markets see a 12% chance of a Fed rate hike in July.”
The Globe and Mail
