Wall Street Surges as Geopolitical Relief Lower Oil Prices

U.S. stock futures showed positive performance. Dow Futures rose by 558.00 points, or 1.06%, to 53,193.00. S&P 500 futures gained 43.75 points, or 0.58%, to 7,563.00, while NASDAQ futures rose 58.75 points, or 0.21%, to 28,463.00.

Points to Know Before Market Opens

US stock futures climbed on Monday following a decision by President Donald Trump to delay a planned military strike on Iran. This diplomatic pause drove oil prices down sharply, with Brent crude falling to roughly $83.50 a barrel and West Texas Intermediate dropping to around $79.50. Additional pressure came from OPEC+, which agreed to raise September output by 188,000 barrels a day. While this retreat in energy costs helped ease immediate inflation concerns and provided a relief rally for airlines and transport groups, market sentiment remains fragile due to conflicting diplomatic accounts from Tehran regarding direct talks with Washington.

In currency and economic data developments, the US dollar index slipped below 100 after coordinated US and Japan intervention pulled the yen away from recent lows, trading near 156 to the dollar. Investors are now shifting their attention to upcoming factory data, including the final S&P Global manufacturing PMI and the ISM factory survey, which could heavily influence Treasury yields and interest rate expectations.

Corporate earnings and international semiconductor volatility are also putting recent market optimism to the test. Palantir is set to report its quarterly results after the market close, facing high expectations for nearly 80 percent revenue growth to justify its valuation. Meanwhile, the broader artificial intelligence and tech sectors face headwinds following a sharp decline in South Korean markets, where the Kospi dropped about 5 percent alongside steep losses for major chipmakers.

The 10-year Treasury yield decreased by 0.069 at 4.676%. The 2-year Treasury decreased by 0.052 points at 4.239%.