Investing.com reported that U.S. stock index futures experienced an increase on Monday due to a reduction in geopolitical tensions at the commencement of a week featuring significant technology earnings, monthly nonfarm payroll data, and the final campaigning days before the U.S. presidential election.
As of 06:35 ET (10:35 GMT), the futures rose by 225 points, or 0.5%, increased by 36 points, or 0.6%, and climbed by 155 points, or 0.8%.
In terms of oil prices, a marked improvement in risk appetite was observed on Monday, leading to a pronounced decline in crude oil prices. This shift followed a retaliatory strike by Israel against Iran, which notably avoided targeting key nuclear and oil facilities. Iran indicated that the damage was limited, which raised hopes that a broader conflict in the Middle East would be averted, avoiding potential U.S. involvement.
At 06:35 ET, the Brent contract decreased by 6% to $71.11 per barrel, while U.S. crude futures (WTI) dropped 6.3% to $67.27 per barrel. Traders had been concerned that attacks on Iran’s oil and nuclear infrastructure could escalate the conflict significantly, potentially disrupting oil supplies from the petroleum-rich region.
On Wall Street, indexes closed out the previous Friday with mixed results, as the Nasdaq reached a record intraday high, whereas both the and DJIA struggled below recent highs. Investors have shown increased interest in technology stocks ahead of a series of important technology earnings this week, with five major tech companies set to report. Alphabet will release its earnings on Tuesday, followed by Meta Platforms and Microsoft on Wednesday, and Apple and Amazon on Thursday. These firms represent a significant portion of market valuations on Wall Street, and their earnings are expected to serve as indicators for the broader market. Additionally, this week’s earnings will reveal whether the momentum in artificial intelligence investments continues, as major companies increase their capital spending on the emerging technology.
In addition to major earnings reports, the week will also be centered around key economic data, with Friday’s monthly jobs report being of particular focus. The employment report is anticipated to show a growth slowdown to 111,000 in October, reflecting the effects of strikes and disruptions caused by Hurricanes Helene and Milton. The rate is expected to remain unchanged at 4.1%. Federal Reserve officials are likely to overlook temporary factors impacting payroll figures, but September data released on Tuesday and Thursday’s report on will be scrutinized for any signs of labor market softening.
Further data for the third quarter is expected on Wednesday, and Thursday will see the release of the report on personal income and spending, which includes the central bank’s favored inflation indicator, the .
Additionally, the impending presidential election, with voting set for November 5, remains a focal point. Both Republican presidential candidate Donald Trump and Democratic contender Vice President Kamala Harris are neck and neck in national and swing state polling. However, Trump has improved his polling margins in recent weeks and is slightly favored in election prediction markets.
Ambar Warrick contributed to this report.