Dow futures move higher after strong end to April, latest US-Iran developments
US stock futures have ticked higher after trading resumed on Sunday evening post the weekend break after US President Donald Trump said that the US will begin guiding some neutral ships trapped in the Persian Gulf out through the Strait of Hormuz from Monday.
Futures tied to the Dow Jones are up 100 points, while those linked to the S&P 500 and Nasdaq are up 15 points and 50 points respectively. Both S&P 500 and Nasdaq had ended at record highs last week. The S&P 500 and Nasdaq had also reported their best monthly performance since 2020. For the Dow, it turned out to be the best month since November 2024.
“Project Freedom”
In a Truth Social post on Sunday, Trump announced “Project Freedom”, which he entails as the US helping free cargo ships of countries not involved in the conflict in West Asia.
“I have told my Representatives to inform them that we will use best efforts to get their Ships and Crews safely out of the Strait,” he said in his post. “In all cases, they said they will not be returning until the area becomes safe for navigation, and everything else.”
Trump did not offer any further details on how the plan will be implemented.
Oil Ticks Lower
Oil prices have also ticked marginally lower this morning after last Friday’s drop. The July contracts of the West Texas Intermediate are trading 0.6% lower, around the mark of $95 a barrel. Oil prices are also lower after the OPEC+ group agreed to increase production by 1,88,000 barrels per day in June, in what was their first meeting after the UAE left the cartel on Friday.
Other Asset Classes & The Week Ahead
Most of the other asset classes, Gold, Silver and the US Dollar are not seeing significant price moves just yet with all of them trading little changed from where they closed heading into the weekend. Gold remains at $4,600 an ounce, Silver at $75.50, while the US Dollar index remains at 98.
The non-farm payrolls report is the most important macro statistic coming out of the US this week, along with results from Palantir, AMD, ARM Holdings and others.
“The strong global earnings cycle and a few persistent investment themes remain supportive of global equity market returns,” Bank of America’s Nigel Tupper wrote in a Friday note to clients.