U.S. equity futures pointed to a mixed open Monday as a fresh escalation in the Strait of Hormuz pushed crude oil sharply higher.
Tensions escalated after Iran's Islamic Revolutionary Guard Corps boarded two container ships near the vital shipping lane, a key artery for global crude flows, reigniting supply-disruption fears that had ebbed earlier in April.
Diplomatic signals are mixed. Iran has reportedly offered a new proposal to the U.S. for reopening the Strait of Hormuz and ending the war while suggesting nuclear talks be deferred, per Axios. Over the weekend, however, President Trump scrapped plans to send envoy Steve Witkoff and Jared Kushner to Pakistan for ceasefire talks, noting negotiations could happen by phone.
Pre-Market Snapshot (Quotes as of 7:30 a.m. ET)
- S&P 500 Futures: 7.195.50 (+0.01%)
- Dow Futures: 49,331 (-0.12%)
- Nasdaq-100 Futures: 27,482.50 (+0.19%)
- Russell 2000 Futures: 2,798.90 (+0.10%)
- VIX: 18.97 (+1.39%)
- WTI Crude Futures: $95.05 (+0.69%)
- Gold Futures: $4,717 (-0.50%)
- EUR/USD: 1.1744 (+0.23%)
- Bitcoin (USD): $77,876.02 (-0.31%)
Commodities: crude pops, gold slips
West Texas Intermediate (WTI) futures rose about 0.70% to above $95 a barrel, although off the highs seen in early European trading, while international benchmark Brent oil futures gained by a similar magnitude to a little over $106 per barrel. Gold eased modestly, with spot prices hovering near recent ranges after a volatile run tied to the same geopolitical narrative.
Overseas: Asia Mixed, Europe firms
Asian equities closed mixed overnight as investors watched the Hormuz headlines. Japan's Nikkei 225 gained 1.38%, and South Korea's KOSPI climbed 2.15%, while Hong Kong's Hang Seng fell 0.20%.
In Europe, the pan-European Stoxx 600 gained about 0.40% in morning trading, with stock markets in London, Paris, Frankfurt and Milan all trading in the green. Oil and gas stocks led sector gains, as energy prices rose.
Forex and rates
The dollar weakened against major peers, with EUR/USD rising to 1.1741 and the U.S. 10-year Treasury note yield edged up early Monday. Both have been rangebound recently, though the 10-year yield touched an 11-day high on Friday before edging lower. Both are sensitive to war news and could rise if tensions flare, a rise in either would likely pressure equities.
What traders are watching this week
Earnings and the Fed dominate the calendar. Five of the "Magnificent Seven" are set to report results in the final week of April, raising the stakes for a market already priced for strong growth. Alphabet, Amazon, Meta Platforms and Microsoft — all reporting Wednesday — are each up more than 10% this month, while Apple has gained over 6% ahead of its Thursday release.
Looking ahead, Wedbush analyst Daniel Ives said the unfolding week is a “monster week for Big Tech earnings.” The analyst expects more good news on the horizon from results/guide as the AI Revolution steamrolls ahead.”
Wednesday's FOMC meeting could mark Jerome Powell's final session as chair before Kevin Warsh is expected to take over in May. Traders are pricing a 100% probability that the Fed holds rates unchanged, with fed funds futures indicating policy stays on hold for the rest of 2026. The odds of a rate hike by year-end stand at 8%.
Today's earnings docket
- Verizon Communications (VZ) — before the open
- Domino's Pizza (DPZ) — before the open
- Nucor (NUE) — after the close
- Public Storage (PSA) — after the close
- Cincinnati Financial (CINF), AvalonBay (AVB), Ventas (VTR), Universal Health Services (UHS) — after the close
