Futures Higher as Markets Look Past Iran Tensions, Focus on Earnings

U.S. stock futures are slightly higher in premarket trading following Monday’s rally in which traders shrugged off a breakdown in peace talks between the U.S. and Iran, yet were optimistic that a deal between the two countries was still possible. Stocks were initially negative yesterday before a broad-based surge in the afternoon.

President Donald Trump also said Monday that, “We’ve been called by the other side.” He also said: “They’d like to make a deal very badly.” Monday’s gains erased the S&P 500 losses suffered since the Iran war began and are only 1.7% below its record high from January.

Traders on Monday were also able to shrug off a jump in oil prices but crude is down over 1% this morning near $97 a barrel. Investor focus will continue to be on headlines out of the Middle East along with fallout from Bank earnings from JPMorgan Chase (JPM), Citigroup (C) and Wells Fargo (WFC) this morning.

Snapshot (as of 7 AM ET)

• Oil (/CL) – Oil prices are down about 1.5% near $97 a barrel, as the International Energy Agency forecast that “demand destruction will spread” amid growing supply scarcity and higher average prices because of the conflict in the Middle East. The conflict has already led to the greatest disruption to oil supply in history, according to the IEA, and the largest ever monthly spike in prices during March. The IEA’s latest forecasts indicate global oil demand could contract by the greatest degree since the Covid-19 pandemic.
• Gold (/GC) – Gold futures are up 0.6% near $4800, recovering from weakness in the previous session, as hopes of a resolution to the war in Iran weighed on the dollar and eased inflation concerns as oil prices eased.
• Bitcoin (/BTC) – The Crypto Future is up 1.5% near 74,500 in premarket trading.
• VIX – The CBOE Volatility Index was down 0.5% on Monday and settled at 19.12 as stocks were higher. It was the lowest closing price for the VIX since February 26th .
• U.S. Dollar (/DX) – The dollar is lower in the session, trading at 98.05.

Biggest Premarket Movers (as of 7 AM ET)

JPMorgan Chase (JPM): -2.99%

Dell Technologies (DELL): -1.73%

HP Inc. (HPQ): -1.72%

Altria Group Inc. (MO): -1.11%

American Tower (AMT): -0.99%

Oracle Corp (ORCL): 4.04%

Robinhood (HOOD): 2.90%

Ford (F): 2.38%

Western Digital Corp (WDC): 2.18%

Coherent Corp (COHR): 2.00%

Economic Data

• 6:00 AM ET – NFIB Small Business Optimism Index
• 8:30 AM ET – Producer Price Index (PPI)
• 12:15 PM ET – Fed’s Goolsbee Speaks
• 12:45 PM ET – Fed’s Barr Speaks

Notable Earnings

• Premarket: ACI, BLK, KMX, C, JNJ, JPM, RENT, WFC
• Postmarket: N/A
• Premarket Tomorrow: ASML, BAC, FHN, MTB, MS, PNC, PGR
• Postmarket Tomorrow: JBHT, SLG

Upgrades/Downgrades

• UBS upgrades Tesla (TSLA) to Neutral from Sell
• Deutsche Bank upgrades General Motors (GM) to Buy from Hold
• UBS upgrades Ford (F) to Buy from Neutral
• Piper Sandler downgrades SAP (SAP) to Neutral from Overweight
• Craig-Hallum downgrades Fastly (FSLY) to Hold from Buy
• Piper Sandler downgrades Monday.com (MNDY) to Neutral from Overweight

This material is intended for informational purposes only and should not be considered a personalized recommendation or investment advice. Investors should review investment strategies for their own particular situations before making any decisions.

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Data contained herein is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. All events and times listed are subject to change without notice.