US stock futures climbed higher in the overnight session late Sunday ahead of a key earnings week. Nasdaq-100 futures rose 0.45%, Dow futures gained 0.04%, and S&P 500 futures advanced 0.14% at 9:11 PM EDT. The gains came as tensions in the Middle East escalated over the weekend, with the US launching its ninth consecutive strike on Iran late Sunday. Oil prices soared amid the tensions, with Brent crude rising above $90 a barrel.
Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY), the Invesco QQQ Trust (QQQ), and the SPDR Dow Jones Industrial Average ETF Trust (DIA) all edged higher at the time of writing. Sentiment for SPY and DIA was neutral, while it was extremely bullish for QQQ at the time of writing. The iShares 20+ Year Treasury Bond ETF (TLT) was down 0.34% amid bearish sentiment.
US Benchmark Indexes Posted Worst Week This Quarter
All three benchmark indexes closed lower on Friday amid a selloff in chip stocks and growing concerns over AI spending. The Nasdaq Composite led the declines, shedding more than 360 points to close 1.40% lower. The S&P 500 was down 1.01%, while the Dow closed 0.77% lower.
The Dow Jones Industrial Average closed at 52,146.42, the S&P 500 at 7,457.69, and the Nasdaq Composite at 25,520.24 on Friday.
The Nasdaq, S&P 500 and Dow indexes also posted the worst week this quarter, tumbling nearly 3%, 1.55% and nearly 1%, respectively. The VanEck Semiconductor ETF (SMH) tumbled nearly 9% last week as Taiwan Semiconductor's capex hike weighed heavily on chipmakers.
Chief market technician at BTIG, Jonathan Krinsky, said semiconductor companies could slip even further from here. "They could certainly bounce here in the short term, but we don't see signs of (any) kind of that real big washout that you're looking for," Krinsky told CNBC on Friday.
Alphabet and Tesla Report Q2 Earnings Wednesday
Two Magnificent Seven members, Alphabet Inc. (GOOG, GOOGL) and Tesla Inc. (TSLA), are slated to report their second-quarter (Q2) results on Wednesday. Chip giant Intel Corp. (INTC) will report its Q2 results on Thursday.
Other noteworthy names reporting earnings this week include General Motors Co. (GM), AT&T, Inc. (T), International Business Machines Corp. (IBM), ServiceNow, Inc. (NOW), and Verizon Communications, Inc. (VZ). Airline companies, including Southwest Airlines Co. (LUV) and American Airlines Group, Inc. (AAL), will also report quarterly results.
US Launched Ninth Consecutive Strike on Iran Late Sunday
Tensions in the Middle East escalated over the weekend, with the US launching its ninth consecutive strike on Iran late Sunday.
"CENTCOM began conducting a new wave of strikes against Iran at 7 p.m. ET today for the ninth consecutive night. The strikes will continue degrading Iranian military capabilities used to attack commercial vessels and civilian mariners transiting the Strait of Hormuz," the US Central Command said in a post on X.
Over the weekend, a third US service member died in the recent conflict in the Middle East. After initially reporting two deaths and one missing service member following an Iranian attack in Jordan on July 17, CENTCOM said that US forces later confirmed the death of the third member.
Iran's Deputy Foreign Minister Kazem Gharibabadi said in a post on X, "The U.S. attack on the under-construction facilities of the Darquoin power plant is a dangerous assault on Iran's peaceful infrastructure and fully implicates the U.S. government in the consequences stemming from heightened insecurity and instability. Iran, while issuing a resolute condemnation of this aggression, will take appropriate measures to defend its national interests and security."
Brent Crude Rose Above $90 Per Barrel
Oil prices soared amid the flare-up of conflict between the two nations, rising above $90 a barrel.
Brett Erickson, Managing Principal at Obsidian Risk Advisors, commented on X in a post: "Oil hitting $90 at open just now. While it is still at a price point that... really isn't explainable by anyone I've talked to, it clearly indicates that the only reason it was down in the first place was due to the MOU. This is a clear indication to Iran that disincentives cowering to American pressures in the near-term."
At the time of writing, Brent crude futures expiring in September were up more than 2% to $90.11 per barrel, while WTI crude futures expiring in August also rose nearly 2% to $84.13 per barrel.
Yields on the 10-year Treasury were at 4.551% at the time of writing, while spot gold prices were trading at $4,005.20 per ounce.
Trump Media, SELLAS Life Sciences, Nvidia, Palo Alto Networks Drew Retail Attention
Trump Media & Technology Group Corp. (DJT) was trending among retail investors amid a series of fresh catalysts, including a settlement announcement about mutually resolving all legal claims between the company, former CEO Patrick Orlando, and ARC Global Investments II LLC and the recent strategy to monetize access to Truth Social's top accounts.
SELLAS Life Sciences Group Inc. (SLS) drew attention ahead of the key overall survival readout from the Phase 3 trial for galinpepimut-S in acute myeloid leukemia.
Nvidia Corp. (NVDA) was on the retail radar amid growing concerns about ballooning AI capex. Apple Inc. (AAPL) also dethroned Nvidia as the most valuable company in the world on Friday.
Palo Alto Networks Inc. (PANW) shares edged higher in the overnight session on Sunday amid broader gains in the sector over the past week after a comment from International Business Machines Corp. (IBM) suggested that enterprise spending priorities are shifting away from traditional IT infrastructure and toward cybersecurity.
Asian markets were trading mixed at the open on Monday, with South Korea's KOSPI, Japan's Nikkei 225, and China's SSE Composite index declining at the time of writing. Australian stocks were trading in the green at the open.
FAQ
What did US stock futures do late Sunday?
US stock futures climbed higher in the overnight session late Sunday. Nasdaq-100 futures rose 0.45%, Dow futures gained 0.04%, and S&P 500 futures advanced 0.14% at 9:11 PM EDT.
Why did oil prices surge over the weekend?
Oil prices soared amid escalating tensions in the Middle East, with the US launching its ninth consecutive strike on Iran late Sunday. Brent crude prices rose above $90 a barrel.
Which major companies report earnings this week?
Alphabet Inc. (GOOG, GOOGL) and Tesla Inc. (TSLA) are slated to report their second-quarter results on Wednesday. Intel Corp. (INTC) will report its Q2 results on Thursday. Other noteworthy names reporting earnings this week include General Motors Co. (GM), AT&T, Inc. (T), International Business Machines Corp. (IBM), ServiceNow, Inc. (NOW), and Verizon Communications, Inc. (VZ).
