US Futures Rebound on Monday

US stock indices rebounded from seven-month lows on Monday with support from a rebound in Treasuries across the curve, as markets continued to assess the impact that higher energy prices will have in the economy. The S&P 500, Dow, and Nasdaq 100 were around 0.7% higher. Crude oil and product prices rose further after Houthi attacks threatened exports from the Red Sea, while President Trump delivered more threats to Iran should a deal not be reached soon. Still, bond yields eased from peaks in a sign that growth concerns from energy shortages are being considered in tandem with inflationary risks, supporting equities that have been pressured by higher credit costs. Stocks in the technology sector were mostly higher after their sharp losses from Friday extended the Nasdaq's underperformance with Nvidia, Amazon, and Microsoft gaining over 1%. Banks also rose amid the respite for bonds, with JPMorgan and Bank of America advancing over 1%.

Futures tracking US equities rose on Monday with support from some respite for Treasuries across the curve as markets continued to assess the impact that higher energy prices will have in the economy. Contracts for the S&P 500, Dow, and the Nasdaq 100 were 0.7% higher. Energy prices rose further after Houthi action threatened exports from the Red Sea, while President Trump delivered more threats to Iran should a deal not be reached soon. Still, bond yields eased from peaks in a sign that growth concerns from energy shortages are being considered in tandem with inflationary risks, supporting equities that have been pressured by higher credit costs. Stocks in the technology sector were mostly higher pre-market after their sharp losses from Friday pressured the Nasdaq into its lowest in seven months, with Nvidia, Amazon, and Microsoft gaining nearly 1%. Banks also rose amid the respite for bonds.

US stock futures dropped on Monday as the Middle East conflict entered its fifth week with no end in sight, pressuring global markets. Dow and S&P 500 futures both fell about 0.6%, while Nasdaq 100 futures lost 0.8%. Tensions escalated after President Donald Trump said he could “take the oil in Iran” and seize its export hub of Kharg Island, echoing the US military operation in Venezuela earlier this year. The US is also reportedly preparing for weeks of ground operations in Iran after additional troops arrived in the region. Meanwhile, Iran-backed Houthi militants in Yemen joined the conflict after targeting Israel over the weekend. On Friday, selling pressure intensified on Wall Street as investors reduced exposure ahead of the weekend, with the Dow losing 1.73%, and the S&P 500 and Nasdaq Composite dropping 1.67% and 2.15%, respectively. Investors now look ahead to key jobs reports this holiday-shortened week, alongside earnings from Nike, USA Rare Earth, and Conagra Brands.