US futures edge higher as Middle East tensions, oil prices and Big Tech earnings dominate markets: Dow Jones, S&P, Nasdaq, Wall Street

U.S. stock index futures traded modestly higher on Monday as investors balanced escalating geopolitical tensions in the Middle East against a busy week of corporate earnings led by several of America’s largest technology companies.

By early morning trading, Dow Jones futures had added around 50 points, or 0.1%, while S&P 500 futures rose 0.2%. Nasdaq 100 futures outperformed with a gain of 0.5%, supported by expectations ahead of a series of closely watched technology earnings releases.

Wall Street finished lower on Friday as concerns grew that the rapid expansion of artificial intelligence spending could begin to moderate. Although AI has been a major driver of equity gains this year, some investors have started to question whether current investment levels can be sustained.

Chipmakers were among the weakest performers, with the Philadelphia Semiconductor Index falling more than 20% below its June peak, placing the benchmark in bear market territory.

Analysts at Vital Knowledge said, “For tech investors, bears won the week overwhelmingly, although the slump was more a function of narrative shift and technical dislocation (extremely crowded and complacent positioning and bullish but stale sentiment) than incrementally negative news flow.”

Middle East conflict keeps markets on edge

Geopolitical risks remained a key focus after the United States carried out military operations against Iran for a ninth consecutive day, raising concerns that disruption to shipping through the Strait of Hormuz could continue.

Iran said two oil tankers had been struck and disabled, while the Islamic Revolutionary Guards Corps claimed responsibility for attacks targeting U.S. military assets in Jordan, Kuwait and Syria. Bahrain also reported that emergency warning sirens had been activated on Monday morning.

The renewed exchange of strikes has intensified uncertainty over one of the world’s most important energy shipping routes. Investors continue to monitor developments closely for signs that oil and liquefied natural gas supplies could face further disruption.

Brent crude climbs above $90 a barrel

Oil prices extended their recent rally as concerns over supply risks increased.

Brent crude rose 2.8% to $90.56 a barrel, moving back above the $90 level, while U.S. West Texas Intermediate crude gained 2.3% to $84.39 a barrel.

Crude prices have remained highly volatile since the conflict escalated earlier this year. After previously climbing above $110 a barrel before easing following the ceasefire agreement in June, renewed military action has once again pushed prices sharply higher.

The latest increase has revived concerns that higher energy costs could contribute to another wave of inflation, potentially delaying interest rate cuts or prompting central banks to maintain restrictive monetary policies for longer.

Moonshot AI reportedly prepares Hong Kong listing

Bloomberg News reported that Chinese artificial intelligence startup Moonshot AI is preparing for a potential initial public offering in Hong Kong within the next six months.

According to the report, the Beijing-based company has circulated a shareholder resolution related to the proposed listing while also working to complete a private fundraising round that could value the business at more than $30 billion.

Investor interest has strengthened following the launch of Moonshot’s Kimi K3 artificial intelligence model, although the company has acknowledged that it still trails Anthropic’s Claude Fable 5 and OpenAI’s GPT-5.6 in overall capability.

SpaceX plans another Starship test flight

SpaceX (NASDAQ:SPCX) said it is targeting Thursday for the thirteenth test flight of its Starship launch system after last week’s mission was called off shortly before liftoff because several engines failed to ignite.

The company said the upcoming mission will focus on achieving a successful launch, stage separation and controlled landing sequence, while also carrying Starlink V3 satellites into space.

Following the announcement, SpaceX shares rose more than 1% in extended trading.

SpaceX stock price