TLDR
- US stock futures jumped Monday, with Dow futures up 1% and Nasdaq futures surging 1.4%
- Oil prices fell over 7% after the US and Iran agreed to a pause in fighting
- Brent crude dropped to around $87 a barrel, easing inflation concerns
- The Federal Reserve meets Wednesday with markets split on a hold or rate hike
- Microsoft, Meta, Apple and Amazon all report earnings this week
US stock futures climbed sharply on Monday morning as oil prices dropped and investors prepared for one of the busiest weeks of the quarter.
Dow Jones futures rose 1.1%, adding around 551 points. S&P 500 futures gained roughly 1%, and Nasdaq 100 futures jumped 1.6%.
The gains came after all three major indexes fell last week as Middle East tensions pushed oil prices higher and raised fears about inflation.
Oil Drop Eases Inflation Fears
The mood shifted over the weekend after President Donald Trump paused US air strikes on Iran, allowing diplomatic talks to restart. The Wall Street Journal reported the decision came from US officials familiar with the matter.
BREAKING: Iran directly rejects Trump‘s claims of ongoing negotiations, with Iran's Foreign Ministry declaring it is "not engaged in any negotiations with the United States" and says Iran has not requested to restart talks because "it's not in our DNA," instead the US has…
— The Hormuz Letter (@HormuzLetter) July 27, 2026
Brent crude futures fell around 5% to $87.13 a barrel. West Texas Intermediate dropped 5.5% to $84.37.
That drop in oil pulled bond yields lower too. The 10-year Treasury yield slipped 4 basis points to 4.64%.
Kathleen Brooks, research director at XTB, said the pause in hostilities had “dramatically reduced the geopolitical risk premium” for investors.
Fed Decision in Focus
The Federal Reserve is set to announce its interest rate decision on Wednesday. Markets are pricing in a 66% chance the Fed holds rates steady and a 34% chance of a hike, according to the CME FedWatch tool.
Lower oil prices could take some pressure off the Fed, which has been watching inflation data closely before making its next move.
This is one of the least-telegraphed Fed decisions in recent years, leaving investors uncertain about the outcome.
Big Tech Earnings Take Center Stage
Alongside the Fed meeting, investors will be watching a wave of earnings from major tech companies.
Microsoft, Meta Platforms, Apple and Amazon are all due to report this week. Markets will be focused on capital spending plans and any updates on AI revenue.
The attention on AI spending comes after Alphabet and Tesla’s recent capital expenditure announcements rattled the tech sector.
Other companies reporting this week include Coca-Cola, Starbucks, Procter & Gamble and Arm Holdings. ExxonMobil and Chevron close out the week’s earnings calendar.
AstraZeneca and Nucor Corporation kick off the earnings schedule on Monday.
The combination of a Fed decision, falling oil prices and a heavy slate of Big Tech results makes this one of the most event-packed weeks of the quarter.
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