US stock futures rose on Monday as concerns over the fallout from Iran’s attack on Israel eased, allowing investors to focus on earnings season and inflation risks. The S&P 500, Dow Jones Industrial Average, and Nasdaq 100 futures all saw gains, with tech-heavy Nasdaq leading the way.
Investors are feeling more optimistic as fears of a full-blown war in the Middle East subside following Iran’s missile and drone strike on Israel. Efforts by the US to calm tensions and prevent further escalation have helped soothe nerves.
Stocks have been under pressure recently due to lackluster earnings reports and concerns about inflation not meeting the Federal Reserve’s target. Traders have adjusted their expectations for interest rate cuts in response to disappointing economic data.
Investors are now turning their attention to earnings reports from heavyweights like Goldman Sachs and Charles Schwab. These results are crucial for reviving the early 2024 equity rally.
In commodities, oil prices fell slightly after rising ahead of Iran’s attack. The 10-year Treasury yield also saw an increase, while gold prices dipped slightly.
Meanwhile, reports have surfaced that Salesforce is considering a deal to acquire data management company Informatica for around $11 billion. This news has caused some uncertainty among investors, as Salesforce has been focused on improving profit margins in recent years.
Citigroup has identified Nvidia and Intel as potential upside catalysts, despite recent declines in their stock prices. Analysts are optimistic about the outlook for both companies and expect positive developments in the near future.
Overall, while the situation in the Middle East remains a concern, investors are cautiously optimistic about the market’s direction moving forward. It will be important to continue monitoring geopolitical risks and their potential impact on global markets.
