Futures Rebound After Dow's Worst Week Since March
U.S. stock futures moved higher early Monday, following the Dow Jones Industrial Average's third consecutive weekly decline. S&P 500 futures and Nasdaq-100 futures gained 0.42% and 0.58%, respectively, while Dow futures added 0.36%. The Dow fell 1.7% last week, its worst performance since March. The S&P 500 slipped about 0.1%, and only the tech-heavy Nasdaq finished higher, up 0.7%.[S1]
Monday's early gains followed a weekend in which Middle East tensions worsened. The Iran-backed Houthis claimed responsibility for missile and drone strikes on Saudi Arabia on Saturday. That same day, the U.S. State Department advised Americans to think twice about Middle East travel, as Washington and Tehran each threatened to restart attacks.[S1]
Asia Mixed as Japan Closes for Holiday
Asian markets were mostly higher. South Korea's Kospi climbed 1.66%, and the smaller Kosdaq rose 0.82%. Australia's S&P/ASX 200 ended roughly unchanged. Trading was closed in Japan for a holiday. In Hong Kong, the Hang Seng advanced 0.57%, and on the mainland the CSI 300 was up 0.42%.[S1]
Fed Hike, Oil Near $100 and Trump-Xi Summit in Focus
Last week the Federal Reserve lifted rates for the first time in three years, with the U.S. still wrestling with stubborn inflation and high bond yields. Crude remains around $100 a barrel, and the 10-year Treasury yield sits near 5%. Against that backdrop, a summit this week between President Donald Trump and China's President Xi Jinping — covering tariffs, critical minerals, artificial intelligence and other economic matters — takes on added weight. Treasury Secretary Scott Bessent met Chinese Vice Premier He Lifeng beforehand.[S1]
LPL Financial chief economist Jeffrey Roach observed that the very geopolitical conflict pushing energy prices up is also keeping the Federal Reserve in a hawkish stance and pressuring Chinese refiners. He pointed out that the committee led by Fed Chairman Kevin Warsh has tied its inflation projections to oil markets calming down, and that Beijing's budget planning depends on that same factor.[S1]
