US stock futures moved higher on Monday as oil prices fell sharply after the US refrained from attacking Iran over the weekend, while Tehran also suspended its retaliatory strikes.
The pause followed nearly two weeks of escalating conflict, although Iran-backed Houthis in Yemen claimed attacks on Saudi Arabian facilities along the Red Sea, leaving markets cautious about the risk of further supply disruptions.
Investors are also preparing for a busy week of corporate earnings and the Federal Reserve's upcoming policy meeting.
Quarterly results are expected from megacap technology firms including Apple, Microsoft, and Meta Platforms, along with major companies such as Visa, Exxon Mobil, Starbucks, Ford, and PayPal.
On the policy front, the Fed is widely expected to keep interest rates unchanged on Wednesday before raising them in September, although some market participants believe the central bank could act as soon as this week's meeting.