US stock futures climbed on Monday following reports that the US and Iran have agreed to stop tit-for-tat attacks that broke out over the weekend, enabling peace talks to continue.
Nasdaq 100 (NQ=F) futures rose 1%, while those on the S&P 500 (ES=F) moved up 0.7%, after both indexes closed out last week with sharp losses. Contracts on the Dow Jones Industrial Average (YM=F), which is less exposed to tech names, put on roughly 0.4%.
Markets headed into a holiday-shortened week on edge after the US launched strikes on Iranian military targets over the weekend, which escalated tensions in the Middle East and renewed concerns over a hit to global energy supplies.
The strikes came after Washington said Tehran carried out attacks along the Strait of Hormuz. President Donald Trump later warned of further military action, writing on Truth Social the US may “militarily complete the job that we very successfully started. If that happens, the Islamic Republic of Iran will no longer exist!”
Oil prices moved higher as investors assessed the risk of further disruptions to crude supplies. Brent (BZ=F) crude futures gained 1.3% to reach over $73 a barrel, while US West Texas Intermediate (CL=F) futures rose 1.7% to top $70.
The strikes further destabilized markets already rocky as techs came under pressure last week. On Friday, the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) booked weekly losses of over 2% and 4.5%, respectively. “Magnificent Seven” big techs Nvidia (NVDA) and Alphabet (GOOG) both saw shares slide over 8% over the days. But the Dow eked out a 0.6% as healthcare stocks provided support.
The highlight of the coming week will be the June jobs report. The monthly nonfarm-payrolls update, seen as crucial to the Federal Reserve’s policy thinking, is due for release on Thursday, not Friday as usual. Markets will close for trading on Friday to mark the Fourth of July holiday on, which falls on Saturday.