US stock futures advanced on Monday after President Donald Trump said he had called off planned military strikes against Iran and announced that talks between Washington and Tehran would resume, easing concerns over a broader conflict in the Middle East.
As of the latest available market data, Nasdaq-100 futures were up around 0.6%, tracking gains across US equity futures after crude oil prices slumped sharply following Trump's remarks.
Trump said on Sunday that he had canceled a planned attack on Iran, reversing expectations of a fresh escalation after reports last week suggested the US was preparing another round of strikes.
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The de-escalation triggered a sharp pullback in energy prices. Brent crude fell 5.2% to about $83.39 a barrel, while West Texas Intermediate (WTI) crude dropped 6.2% to around $79.45 a barrel.
US Treasury bonds also rallied, with the benchmark 10-year Treasury yield falling six basis points to 4.68%, as investors pared inflation concerns linked to higher oil prices.
Despite the relief rally, investors remained cautious. The broader optimism, however, did not extend to semiconductor shares.
In pre-market trading, Micron Technology fell 3.4%, SK Hynix ADR declined 3.3%, while Advanced Micro Devices (AMD) lost 1.8%, indicating continued pressure on chipmakers despite the improved geopolitical backdrop.
Monday also marks the first trading session of August, with investors turning their attention to a busy week of US economic data.
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The spotlight will be on Friday's July non-farm payrolls report. According to FactSet consensus estimates cited by CNBC, the US economy is expected to have added 87,500 jobs in July, compared with 57,000 in June, while the unemployment rate is projected to edge up to 4.3% from 4.2%.
Global markets were mixed. European equities traded higher in early dealings, with Germany's DAX leading gains, while Asia-Pacific markets ended mixed. South Korea's Kospi tumbled more than 5%, surrendering part of Friday's record rally, whereas Australia's S&P/ASX 200 closed higher.
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