U.S. markets eye earnings season as Middle East tensions ease: Dow Jones, S&P, Nasdaq, Wall Street Futures

New York Stock Exchange on Wall Street ©Shutterstock U.S. stock futures moved higher on Monday as investors welcomed signs of a pause in hostilities between the United States and Iran, helping to ease pressure on energy markets ahead of a crucial week for corporate earnings and central bank decisions. By 05:49 GMT, Dow Jones futures had gained 398 points, or 0.8%, while S&P 500 futures were up 66 points, or 0.9%. Nasdaq 100 futures led the advance, climbing 406 points, or 1.4%. Wall Street ended last week on a mixed note as rising oil prices and geopolitical uncertainty weighed on investor sentiment. However, indications that the White House is seeking to avoid a broader military escalation have improved market confidence, pushing oil prices lower while supporting both equities and bond markets. Earnings and Federal Reserve in focus Investors are now turning their attention to one of the busiest weeks of the earnings season, with around one-third of S&P 500 companies scheduled to publish quarterly results. Overall earnings are forecast to increase by approximately 26.5% compared with the same period last year. Several of the world’s largest technology companies are due to report this week, including Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL). Their results are expected to provide fresh insight into whether the rapid pace of investment in artificial intelligence infrastructure can continue, as markets increasingly debate the long-term profitability of AI-related spending. Monetary policy is also firmly in focus ahead of the Federal Reserve’s interest rate announcement on Wednesday. While inflation risks linked to the conflict in the Middle East remain under close scrutiny, futures markets continue to indicate that most investors expect policymakers to leave interest rates unchanged. U.S.-Iran pause supports market sentiment The temporary suspension of military action between the United States and Iran extended into a second day, raising hopes that energy exports from the Gulf region could continue without significant disruption. According to reports, President Donald Trump decided to delay further military action amid concerns over available defence resources and a desire to avoid a broader regional conflict that could threaten global energy supplies. However, U.S. Ambassador to the United Nations Mike Waltz downplayed suggestions that military resources were becoming depleted, stating instead that the administration is “giving talks some space.” He added: “We’ve had both Oman and Iran, and a number of our other negotiators, engaged at every level, from the most senior levels all the way down to the technical level over the past few weeks, and particularly in the past few days.” Iran has also indicated it will suspend further attacks provided the United States continues its pause in military operations. Oil retreats as supply concerns ease Crude oil prices declined sharply as fears of further disruption to global supply routes diminished. Brent crude, the international benchmark, fell 6.8% to around $90.25 per barrel after briefly trading above $100 last week amid concerns that the conflict could spread across the Gulf region. Investors had been particularly concerned about the possibility of disruptions to shipping through the Bab el-Mandeb Strait and the Strait of Hormuz, two of the world’s most important energy transport routes. The easing of tensions has reduced those concerns, although markets remain alert to further developments. Nvidia explores financing support for OpenAI project Separately, Nvidia (NASDAQ:NVDA) is reportedly in discussions to provide a financial guarantee worth approximately $250 billion for OpenAI as part of a major data centre development in Ohio, according to the Wall Street Journal. The proposed guarantee would support the leasing of a planned 10-gigawatt campus being developed by SoftBank’s energy subsidiary and could help secure financing on more favourable terms. The overall project is expected to exceed $500 billion, excluding the cost of Nvidia’s semiconductor products that will equip the facilities. The report comes as investors continue to monitor the rapid increase in capital expenditure across the artificial intelligence sector. While concerns remain over the sustainability of AI-related spending, confidence received a boost after Chinese memory chip manufacturer CXMT Corp surged around 500% during its Shanghai stock market debut following an $8.6 billion initial public offering, giving the company a market valuation of more than 3.6 trillion yuan, or approximately $530 billion. Nvidia stock price Amazon stock price Meta stock price Microsoft stock price Alphabet stock price