Markets are looking into an eventful week — from fading war fears to big tech earnings bonanza to Fed rate decision. Get ready!

🚀 Risk Appetite Returns

  • US stock futures kicked off Monday with a strong rebound as traders welcomed a pause in fighting between the US and Iran.
  • Dow futures climbed 0.8%, S&P 500 futures added 1%, and Nasdaq futures surged 1.5% as investors hit the reset button after .
  • Oil prices joined the relief rally in reverse. Brent crude tumbled 5% to around $91 a barrel, easing one of the market's biggest inflation worries.
  • Lower energy prices can reduce pressure on consumer prices, giving both businesses and central bankers a little more breathing room.
  • Europe joined the optimism with broad gains at the open, while Asia delivered a mixed picture. South Korea's Kospi rose 0.5%, the Kosdaq jumped 1.8%, Japan's Topix edged higher, and the Nikkei 225 slipped slightly into the red.

💻 Big Tech Takes Center Stage

  • This week belongs to Big Tech. Apple, Microsoft, Amazon and Meta are all set to report earnings, and Wall Street wants one answer above all else: is the AI spending spree generating enough returns to justify the eye-watering price tags?
  • The spotlight is even brighter after Alphabet rattled investors last week by . Bigger budgets today can mean stronger growth tomorrow — but they can also squeeze profits right now.
  • The earnings barrage won't just move the tech giants themselves. Chipmakers, cloud providers and AI infrastructure names could all react sharply depending on whether execs double down on spending or hint that the investment boom is cooling.

🏦 Fed Week Adds Another Twist

  • The Federal Reserve also steps into the spotlight on Wednesday. Most traders expect policymakers to leave interest rates unchanged this week.
  • And yet markets still assign roughly a 30% probability to a surprise quarter-point hike, according to CME's FedWatch Tool.
  • Investors are also looking ahead to September, where expectations for another rate increase remain the consensus view. Interest rates influence everything from borrowing costs to stock valuations.
  • US equities head into this packed week looking for a rebound after another rough stretch. The S&P 500 and Nasdaq logged their second straight weekly losses on Friday, while the Dow extended its losing streak to three weeks.