US stock futures edged upwards this Monday as investors braced themselves for a week fraught with uncertainty, following a shaky period for equities. The escalating conflict between the US and Iran continues to dominate market sentiment, particularly due to its impact on global oil prices.
Dow Jones Industrial Average futures saw a modest increase of 0.2%, while S&P 500 futures and Nasdaq 100 futures both experienced gains of approximately 0.4%. This tentative recovery follows a concerning trend, with the S&P 500 recording its third consecutive week of losses, culminating in its lowest close since November.
The surge in oil prices remains a key concern. The ongoing US-Israeli conflict with Iran has severely disrupted shipping through the Strait of Hormuz, a critical artery for global oil supply. Recent US strikes targeting Kharg Island, Iran’s primary export terminal, have exacerbated fears of immediate supply shortages. Iran’s vow to retaliate against US energy infrastructure further compounds these anxieties, creating a volatile environment for energy markets.
Early trading saw both US and international crude benchmarks surpass $100 a barrel, a level not seen since 2022. West Texas Intermediate crude climbed nearly 2%, consolidating above this threshold, while Brent crude rose almost 3%, nearing $106 a barrel.
Beyond geopolitical tensions, investors are also keenly awaiting domestic corporate and policy developments this week. Nvidia’s highly anticipated annual GTC conference commences today, featuring a keynote address from CEO Jensen Huang. Meanwhile, the Federal Reserve is poised to hold its second policy meeting of the year, with widespread expectations that interest rates will remain unchanged.
