SPX: S&P 500 Futures Flat as War Jitters Flare Up Again, Sending Oil Above $90

Markets were stable Monday morning despite intensified attacks between the US and Iran.

⚖️ Markets Keep Their Balance

• US stock futures were surprisingly calm Monday despite another flare-up in the Middle East. S&P 500 futures added 0.2%, Nasdaq futures climbed 0.5%, while Dow futures hovered near flat.
• Last week's mood wasn't nearly as cheerful. The S&P 500 lost 1.6%, the Nasdaq tumbled 2.9%, and the Dow slipped 0.9% as the semiconductor selloff gathered steam and knocked the AI trade off its pedestal.
• Overseas, the picture was mixed. South Korea's Kospi fell 0.8%, the small-cap Kosdaq slid 1.8%, while European futures pointed to a muted open as investors continued digesting developments in the Middle East.

🛢️ Oil Climbs Back Into Focus

• The US military launched a ninth consecutive night of strikes against Iran over the weekend, extending operations aimed at limiting Tehran's ability to threaten commercial shipping through the Strait of Hormuz, one of the world's busiest oil routes.
• Oil wasted little time reacting. US benchmark West Texas Intermediate jumped more than 3% to trade above $85 a barrel, while Brent crude climbed past $91. Higher oil prices tend to revive inflation fears because energy costs ripple through the broader economy.
• Inflation is a big risk because it influences interest rates. If energy prices stay elevated long enough to keep inflation sticky, central banks may hesitate to cut rates — or tighten policy — making borrowing more expensive for businesses and investors alike.

📅 Earnings Ready to Take Over

• Geopolitics may dominate the headlines, but earnings are about to compete for investors' attention. Alphabet and Tesla headline this week's calendar, both reporting after Wednesday's closing bell, while Intel follows on Thursday.
• Intel has something to prove after plunging 13% last week during the semiconductor rout.
• More broadly, investors will be watching whether big tech can justify still-lofty valuations after AI enthusiasm cooled noticeably over recent sessions.