Dow Jones futures advanced by 0.21% to trade near 52,030 during European hours on Monday, while S&P 500 futures gained 0.25% to around 7,880 and Nasdaq 100 futures rose 0.15% to near 31,150 [1]. These gains occurred despite ongoing inflationary concerns and heightened geopolitical risks following deadly attacks on Riyadh’s King Khalid International Airport by Houthi militants. The airport was targeted again on Sunday, a day after an earlier strike resulted in 12 deaths and over 300 injuries [1]. In response, US President Donald Trump is considering joining Saudi Arabia in retaliatory actions against the Iran-backed Houthis in Yemen [1].
Economic data released showed continued pressure on US consumer sentiment. The University of Michigan's Consumer Sentiment Index dropped to 46.3 in October, down from 48.1 in September and missing market expectations of 47.6 [1]. Shifts in Federal Reserve policy expectations were also noted: the probability of a rate hike of at least 25 basis points this month fell to 19.4%, down from 24.4% the prior week, according to the CME FedWatch tool. However, markets are still pricing in an 86% probability of a rate increase at the Fed's December meeting [1].
Last week, all three major US stock indexes closed higher, with a rally in technology shares helping offset concerns about rising bond yields and elevated oil prices [1]. The S&P 500 closed 46 points higher at 7811 on Friday, posting strong gains across the real estate, consumer discretionary, healthcare, and financial sectors, according to analysts at Rabobank [1].
Looking ahead, traders are preparing for a busy week as the third-quarter earnings season begins. Major financial institutions including JPMorgan, Goldman Sachs, Citigroup, and Wells Fargo are set to report results on Tuesday, with Bank of America and Morgan Stanley following on Wednesday [1]. Additionally, key inflation data will be released, with the September Consumer Price Index (CPI) and Producer Price Index (PPI) scheduled for Wednesday and Thursday, respectively [1].
CONCLUSION
US stock futures are showing resilience in the face of geopolitical tensions and weak consumer sentiment, supported by expectations of higher oil prices and upcoming earnings reports from major banks. Market participants remain focused on Federal Reserve policy and key inflation data due this week. The overall market sentiment is cautiously optimistic, with attention turning to corporate earnings and macroeconomic indicators.