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U.S. stock futures rose on Monday, buoyed by improved investor risk appetite following signs of easing tensions between the United States and Iran, as markets prepared for the close of the second quarter and the start of corporate earnings season. Dow Jones futures gained about 170 points , while S&P 500 futures rose 0.6% and Nasdaq 100 futures climbed about 0.7% at the start of the week.
This performance came after officials from both countries announced an agreement to halt military operations and resume peace talks, which boosted optimism in the markets, despite continued caution about the sustainability of the truce and the possibility of renewed tensions.
Energy markets remain a top priority for investors after recent attacks disrupted shipping in the Strait of Hormuz , one of the world’s most important oil shipping lanes, which carries about 20% of global oil trade . However, authorities have confirmed that commercial shipping traffic is expected to return to normal, helping to ease concerns about supply.
Asian markets reflect continued caution
In contrast, Asian markets showed greater caution, with Japan’s Nikkei 225 index falling 0.8% , the Topix index declining 0.4% , and South Korea’s Kospi index dropping 1.5% , as investors continued to price in geopolitical risks. Attention is also focused on the diplomatic track, after the United States proposed a new round of talks with Iran in Doha , Qatar, with negotiations expected to begin as early as this week.
Analysts believe that uncertainty remains the most influential factor on the markets at the moment, as political developments and news headlines have become the main driver of stock movements, ahead of company results and economic data.
Markets prepare for the end of the second quarter
Wall Street entered the final week of June amid portfolio rebalancing as the second quarter drew to a close and investors prepared for the earnings season that began next week. US stock indices ended the previous week with mixed performance, with the S&P 500 falling by about 2% and the Nasdaq dropping 4.6% due to a sell-off in technology stocks, while the Dow Jones Industrial Average managed gains of nearly 0.6% , supported by investors shifting towards defensive stocks.
On a monthly basis, the S&P 500 is on track to record losses of nearly 3% during June, while the Nasdaq has lost more than 6% , while the Dow Jones still holds gains of more than 1% since the beginning of the month.
As the corporate earnings season approaches, investors are waiting to see whether corporate profits will give the markets a fresh boost, or whether geopolitical developments will remain the most influential factor on the movement of US stocks in the coming period.
