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US stock futures rise as Trump's Iran talks lower oil prices; jobs report, earnings and markets in focus
US stock futures climbed as oil prices fell on Iran talks. Investors now await the July jobs report, major earnings and global market updates.
US stock futures moved higher before Wall Street opened on Monday. Dow Jones futures jumped more than 330 points (0.6%), while S&P 500 futures gained around 0.5% and Nasdaq-100 futures also rose over 0.5%.
Markets are focused on July's US jobs report, which will be released on Friday. Investors will also watch several labor market reports throughout the week before the main jobs report, according to CNBC.
US jobs report in focus
The US economy is expected to have added 87,500 jobs in July, up from 57,000 jobs in June, according to FactSet estimates. The unemployment rate is expected to increase slightly to 4.3% from 4.2%.
Oil prices fall
Oil prices dropped sharply after President Donald Trump said he had called off a planned attack on Iran and that new talks would begin on Monday. Brent crude fell as much as 7.3% to around $81.55 a barrel, while West Texas Intermediate (WTI) traded near $80 a barrel.
Middle East talks continue
Trump said he called off a planned large-scale attack on Iran after Middle East allies, including Saudi Arabia, urged him to pursue a diplomatic agreement instead. Trump also said the goal is to quickly reopen the Strait of Hormuz, according to Bloomberg.
Strait of Hormuz shipping still uncertain
Around 20% of the world's crude oil and liquefied natural gas (LNG) normally passes through the Strait of Hormuz. Shipping through the waterway remains uncertain despite hopes for talks. An LNG tanker carrying gas from Qatar was struck by a projectile while passing through the Strait of Hormuz late last week. European natural gas futures dropped as much as 6.3% during early Asian trading, according to Bloomberg.
Iranian Foreign Minister Abbas Araghchi said talks between Iran and Oman are in their final stages. Iran's spokesman Esmail Baghaei said discussions include a new route through the Strait of Hormuz but do not decided whether the waterway will remain open or closed.
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Major OPEC+ countries approved another small increase in production quotas, completing the planned return of supplies that had been cut in 2023. The move gives producers room to pump more oil once the Middle East conflict eases, according to Bloomberg. US Treasury yields moved lower as investors reacted to hopes of lower tensions in the Middle East, according to CNBC.
Big earnings this week
US-listed shares of Alibaba rose about 4.6% in premarket trading. The company launched its new AI model called Qwen3.8-Max, which Alibaba said performs on par with Anthropic's Fable5.
Palantir shares rose about 3.2% in premarket trading before the company reports second-quarter earnings after Monday's market close.
Companies scheduled to report include Advanced Micro Devices (AMD), McDonald's, Kraft Heinz, Costco Wholesale, Walt Disney, and Palantir.
Global markets mixed
South Korea's Kospi fell more than 5%, giving back part of Friday's record rally. The Kosdaq gained 2.44%. Japan's Nikkei 225 dropped 0.94%, while the Topix lost more than 1%. Australia's S&P/ASX 200 rose 0.47%. Mainland China's CSI 300 fell 0.98%. Hong Kong's Hang Seng Index was up around 0.26% during late trading, according to CNBC.
Markets will track US jobs data, major corporate earnings, Middle East developments, oil prices, and global market movements, as these could influence trading sentiment throughout the week.
