Oil Price Drop Lifts Stock Futures Ahead of Fed Decision and Tech Earnings
TLDR
- S&P 500, Nasdaq 100, and Dow futures all rose sharply Monday morning in premarket trading
- Oil prices dropped over 5% after reports that the US and Iran agreed to pause hostilities
- Lower oil prices pushed bond yields down, easing inflation fears
- The Fed meets Wednesday, with markets split between a hold or a rate hike
- Microsoft, Meta, Apple, and Amazon are all set to report earnings this week
US stock futures jumped Monday as oil prices fell sharply, giving investors relief after a rough week driven by Middle East tensions and inflation fears.
S&P 500 futures rose 0.8%, Nasdaq 100 futures climbed 1.4%, and Dow Jones futures added around 400 points heading into the open.
Why Oil Fell
Brent crude dropped 5% to $87.13 a barrel, and West Texas Intermediate fell 5.5% to $84.37. The sell-off came after reports that President Trump paused air strikes on Iran to allow diplomacy to move forward, according to The Wall Street Journal.
The three major indexes had all fallen last week as Middle East fighting drove oil prices higher, raising concerns about inflation and putting pressure on the Fed.
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