US stock futures advanced during European trading hours on Monday, with Dow Jones futures gaining 0.14% to trade around 52,450, S&P 500 futures up 0.26% near 7,520, and Nasdaq 100 futures rising 0.50% to approximately 28,920 [1]. The gains come as traders widely expect the Federal Reserve to hold interest rates steady at its upcoming July meeting [1]. However, market pricing via the CME FedWatch Tool now reflects a 60.7% probability of a rate hike in September, driven by rising oil prices amid US-Iran clashes and renewed inflation risks [1].
The US has conducted its ninth consecutive night of strikes against Iranian targets, prompting Iranian officials to declare the ceasefire between the two nations effectively abandoned. This escalation raises concerns about potential disruptions to key energy pathways in the region's narrow waterways, which could further impact global markets [1].
Last week, major US indexes experienced a tech-led slump, with the Nasdaq Composite dropping 2.9%, the S&P 500 falling 1.55%, and the Dow Jones losing 0.93%. The VanEck Semiconductor ETF led the downturn, plummeting nearly 9% and marking its third weekly drop in four weeks [1]. Investors are now turning their attention to upcoming high-profile quarterly earnings reports from Alphabet, Tesla, and Intel for further market direction [1].
CONCLUSION
US stock futures are rebounding as traders anticipate the Federal Reserve will keep rates unchanged in July, despite rising expectations for a September hike due to geopolitical tensions and inflation risks. Recent market declines, particularly in the tech sector, have shifted investor focus to upcoming corporate earnings for guidance.