U.S. stock futures hold steady as oil reaches two-week high

what happened

U.S. stock futures moved in a narrow range on Monday as investors tracked oil prices and geopolitical developments before major bank earnings and inflation data, Reuters reported. Brent crude futures climbed above $106 a barrel, reaching their highest level in about two weeks after deadly strikes hit Riyadh’s international airport over the weekend.

The advance in oil was limited after President Donald Trump said Russia and Ukraine had agreed to stop attacking each other’s energy infrastructure following a U.S. diesel-supply deal with Moscow. The terms were unclear, and the plan faced opposition in Washington. Chris Beauchamp, chief market analyst at IG, said hopes that Trump’s agreement with Putin could lower prices had been offset by an escalation in the Houthi conflict.

The U.S. earnings season starts Tuesday, with Wells Fargo, Goldman Sachs, Citigroup and JPMorgan Chase among the first major banks due to report. LSEG IBES data show that S&P 500 earnings are expected to increase 30.6% in the third quarter. At 07:12 a.m. ET, Dow E-minis were up 30 points, or 0.06%, S&P 500 E-minis had gained 2.25 points, or 0.03%, while Nasdaq 100 E-minis were down 73 points, or 0.23%.

Investors are also awaiting U.S. consumer and producer price data and retail sales figures. Higher energy costs are expected to lift annual headline CPI to 3.7%, while core inflation is projected at 2.5%. The CME FedWatch tool showed markets pricing in only a 19% probability of a Federal Reserve rate increase this month.

why it matters

The combination of higher oil prices and incoming inflation data keeps the Federal Reserve’s rate outlook central for markets. Bank earnings and results from AI-linked companies may shape trading in U.S. equities this week.

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