Stock futures climb as oil prices rise above $100
Stock futures increased slightly as Wall Street attempted to recover after another week of losses. Investors are watching oil prices and the latest news about the U.S.–Iran war.
Futures for the Dow Jones Industrial Average rose by 153 points, or 0.3%. Futures for the S&P 500 and the Nasdaq-100 also increased by 0.3%.
These movements came after the S&P 500 recorded its third consecutive weekly loss and finished Friday at its lowest level this year. For the week, the index fell 1.6%, while the Dow dropped about 2% and the Nasdaq declined 1.3%.
Oil prices rose strongly last week. Brent crude closed above $100 per barrel for the first time since 2022. Prices increased because shipping through the Strait of Hormuz, an important global trade route, has almost stopped since the war began.
In early trading, WTI crude oil increased 1% to $100.06 per barrel, while Brent crude rose 2.2% to $105.37.
On Friday, President Donald Trump ordered strikes on Iranian military targets on Kharg Island. Although the attack did not damage oil facilities, Trump warned that the U.S. might target them if Iran continues blocking the Strait of Hormuz.
Trump also told NBC during the weekend that Iran wants to reach a deal, but he is not ready to negotiate yet.
Market sentiment improved slightly after a Wall Street Journal report said the U.S. will soon announce a group of countries that will help escort ships through the Strait of Hormuz.
Despite geopolitical tensions, the stock market decline has been limited. The S&P 500 is still only about 5% below its record high earlier this year.
Ed Yardeni, president of Yardeni Research, said the market’s stability may be due to analysts becoming more optimistic about company earnings in 2026 and 2027. However, he noted that analysts may be ignoring the possible negative effects of a long war and the closure of the Strait.
Besides oil prices and the war, investors will also watch Nvidia as the company starts its GTC conference on Monday. In addition, the Federal Reserve will hold its second policy meeting of the year, although interest rates are expected to remain unchanged.
