
Stock Futures Rebound Amid Mideast Conflict, Fed Focus
Market Rebound Amid Geopolitical Tensions
Stock futures showed signs of recovery on Monday following significant declines in the previous session driven by heightened Israel-Iran tensions. Futures tied to the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 rose approximately 0.4% to 0.5%, signaling a potential rebound. The initial selloff on Friday, which saw the Dow drop over 700 points, was triggered by concerns over escalating conflict disrupting global markets.
Oil prices, which surged to their highest levels since January following weekend missile strikes, have since moderated. West Texas Intermediate (WTI) crude edged lower to $72 per barrel, while Brent crude settled near $74 per barrel, down roughly 1% on the day. The easing in oil prices helped alleviate immediate inflation fears, providing a boost to investor sentiment. Analysts remain cautious, however, as further geopolitical escalations could reignite market volatility.
Focus on Federal Reserve Meeting
The Federal Reserve’s upcoming policy meeting has taken center stage as markets anticipate an announcement on Wednesday. Policymakers are widely expected to hold interest rates steady despite recent volatility in oil prices. CME Group’s FedWatch tool indicates a 99% probability of no rate hike this month, underscoring the market’s confidence in the Fed’s current stance.
Investors are keenly awaiting Federal Reserve Chair Jerome Powell’s comments for insights into the central bank’s outlook on inflation and growth. Rising energy costs have complicated the inflation picture, but the broader economic data, including Monday’s Empire State Manufacturing Survey, will offer additional clues. Market participants are also watching for any forward guidance on potential rate cuts in 2024 as the Fed balances economic risks.
Broader Market and Sector Performance
Energy stocks stood out as a rare bright spot in an otherwise mixed market performance. The sector benefited from oil price volatility, bucking the downward trend that saw financials, technology, and materials sectors posting losses last week. Broader market indices, including the S&P 500 and Nasdaq Composite, remain under pressure as investors weigh geopolitical risks against economic resilience.
Meanwhile, gold prices retreated after an initial spike driven by safe-haven flows. The precious metal, which traded as high as $3,435 per ounce during the peak of market anxiety, has since pulled back to $3,418. Analysts suggest that the moderation in both oil and gold prices reflects a cautious return of risk appetite among investors, though further geopolitical developments remain a key wildcard.

- Stock market today: Dow, S&P 500, Nasdaq futures rise, oil slips Israel-Iran strikes focus
yahoo
- Stocks Likely Rebound Sharp Decline Amid Israel-Iran Conflict: S&P 500 Historically Moves Higher War
benzinga
- stock futures steady focus Mideast tensions, Fed meeting
yahoo
- Stock market today: Dow, S&P 500, Nasdaq futures rise, oil slips Israel-Iran strikes focus
yahoo
- Stocks Likely Rebound Sharp Decline Amid Israel-Iran Conflict: S&P 500 Historically Moves Higher War
benzinga
- stock futures steady focus Mideast tensions, Fed meeting
yahoo