U.S. Index Futures Surge While Wall Street Eyes Rebound on Earnings Focus, Oil Prices Slip

U.S. index futures saw significant gains in Monday’s pre-market trading, signaling a potential stabilization on Wall Street after a six-session streak of losses for the S&P 500 and the Nasdaq Composite. Meanwhile, investors are refocusing on corporate earnings results.

As of 6:09 AM, Dow Jones futures (DOWI:DJI) were up 184 points, or 0.48%. S&P 500 futures advanced 0.58%, and Nasdaq-100 futures gained 0.74%. The yield on 10-year Treasury bonds was at 4.656%.

In the commodities market, West Texas Intermediate crude for May fell 0.40%, to $82.81 per barrel. Brent crude for June dropped 0.69%, to around $86.69 per barrel. Iron ore traded on the Dalian exchange decreased by 0.52%, to $119.08 per metric ton.

On Monday’s economic agenda, investors are waiting for the 8:30 AM reading of the Chicago Fed’s national activity index for March.

European markets started the week on a high, showing resilience after a week marked by uncertainties due to tensions in the Middle East and adjustments in interest rate expectations. Retail sector stocks are leading the gains, in contrast to the automotive sector, which is falling. A notable point was the significant appreciation of Galp Energia (EU:GALP) shares, up 17%, reaching a 16-year high, driven by promising prospects for a gas project in Namibia. The absence of major data releases or significant events kept investors focused on market movements and corporate news.

Asian markets showed notable recovery after initial turbulence caused by the conflict between Israel and Iran. On Monday, investors refocused on fundamental economic data, with stability in China’s lending rates highlighted. Despite the maintenance of one-year and five-year lending rates, the market reaction was mixed, with Hong Kong’s Hang Seng index advancing almost 2%, while China’s CSI 300 fell by -0.67%. In contrast, markets in Japan and South Korea saw solid gains, with the Nikkei 225 and the Kospi rising 1% and 1.45%, respectively. The situation of Chinese electric vehicle manufacturers, such as Li Auto (NASDAQ:LI), which suffered a significant drop after reducing the prices of its models, was also a point of attention, highlighting the volatility and competition in the sector.

On Friday, the U.S. stock market saw a notable split: while the Dow Jones grew by 211.02 points, driven by robust gains from American Express (NYSE:AXP) and an increase in oil prices, the Nasdaq fell by 319.49 points due to heavy losses in tech giants such as Netflix (NASDAQ:NFLX) and Nvidia (NASDAQ:NVDA). The latter also reflected the negative trend in the semiconductor sector. Simultaneously, the S&P 500 continued its downward trajectory, marking the sixth consecutive day of losses. Last week, the Nasdaq dropped 5.5% and the S&P 500 plunged 3.1%, while the Dow edged up 0.01%.

On the quarterly earnings front, reports are scheduled to be presented before the market opens from Verizon (NYSE:VZ), Albertsons (NYSE:ACI), Truist (NYSE:TFC), Zions Bancorporation (NASDAQ:ZION), Bank of Hawaii (NYSE:BOH), Washington Trust Bancorp (NASDAQ:WASH), HBT Financial (NASDAQ:HBT), AZZ (NYSE:AZZ), Sify Technologies Limited (NASDAQ:SIFY), JSC Kaspi kz (NASDAQ:KSPI), among others.

After the close, earnings from Nucor (NYSE:NUE), Cleveland-Cliffs (NYSE:CLF), SAP (NYSE:SAP), Cadence Design Systems (NASDAQ:CDNS), AGNC Investment Corp (NASDAQ:AGNC), Globe Life (NYSE:GL), Medpace (NASDAQ:MEDP), Ameriprise Financial (NYSE:AMP), Packing Corporation America (NYSE:PKG), Alexandria (NYSE:ARE), and more are awaited.