- Wall Street futures rose as investors anticipate key earnings and inflation data this week
- S&P 500 and Dow futures gained, while Nasdaq 100 futures slipped slightly
- Oil prices climbed after doubts about the US-Russia energy ceasefire emerged
Wall Street futures edged higher early Monday as investors looked ahead to a busy week of corporate earnings and key inflation data, hoping strong results would help sustain the recent rally despite elevated oil prices and geopolitical uncertainty. S&P 500 futures rose 0.11%, while Dow Jones Industrial Average futures gained 51 points, or 0.10%. Nasdaq 100 futures, however, slipped 0.06%, reversing earlier gains.
The move follows a positive week for US equities, with technology stocks helping investors look past rising oil prices and bond yields. The Dow Jones Industrial Average and S&P 500 each recorded their second weekly gain in three weeks, while the Nasdaq Composite extended its winning streak to four weeks.
Oil prices moved higher on Monday after an initial decline, as doubts emerged over US President Donald Trump's proposed energy ceasefire between Russia and Ukraine. Ukrainian President Volodymyr Zelenskyy said Moscow had already violated the ceasefire, prompting oil prices to reverse their early losses. West Texas Intermediate crude futures rose 1.05% to $92.81 a barrel, while Brent crude futures gained 0.94% to $105.70.
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Investors are counting on the third-quarter earnings season to provide fresh momentum to equities amid continuing geopolitical tensions and higher energy costs.
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The reporting season will gather pace this week, with several major US banks scheduled to announce their results. Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo are among the financial institutions due to report. Market participants will assess whether corporate earnings can continue to support valuations despite higher borrowing costs and an uncertain macroeconomic environment.
Goldman Sachs Group strategists, including Christian Mueller-Glissmann, told Bloomberg that they had turned overweight on equities for three months, citing expectations of strong earnings growth and a recent decline in valuations.
“Double-digit earnings growth has so far helped offset the negative impact of higher rates,” Vincent Juvyns, chief investment strategist at ING in Brussels told Bloomberg. “The earnings season will be important in determining whether the bull market has further room to run.”
Alongside corporate earnings, investors will closely monitor the September consumer price index and producer price index readings, scheduled for release on Wednesday and Thursday, respectively. The data will help markets assess whether inflation is easing or remaining stubbornly high, influencing expectations for the Federal Reserve's next policy moves.
A scheduled speech by Federal Reserve Chair Kevin Warsh will also be in focus as investors look for clues about the interest-rate outlook. Money markets are currently pricing in the possibility of another US rate hike by December.
Traders are hoping that resilient corporate earnings will offset concerns over elevated oil prices and global bond yields, which have climbed to levels not seen in decades.
European equities also opened the week on a positive note. The pan-European Stoxx 600 rose 0.41%, while the UK's FTSE 100 advanced 0.56%. Germany's DAX gained 0.49%, Italy's FTSE MIB rose 0.65%, and France's CAC 40 added 0.11%.
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