U.S. stock futures moved modestly higher on Sunday night after the Dow Jones Industrial Average posted its third consecutive weekly decline. S&P 500 futures rose 0.23%, Nasdaq-100 futures added 0.27%, and Dow futures advanced 0.25%.
The moves followed a fresh escalation in the Middle East over the weekend. Iran-backed Houthis said they attacked Saudi Arabia with missiles and drones on Saturday. Later, the U.S. State Department warned Americans to reconsider travel to the Middle East as Washington and Tehran exchanged threats over renewed attacks.
For the week, the Dow fell 1.7%, its worst weekly showing since March. The S&P 500 slipped about 0.1%, while the tech-heavy Nasdaq was the only major index to post a gain, rising 0.7%.
In Asia, Hong Kong Hang Seng index futures stood at 24,678, versus the index’s previous close of 24,750.78. Futures for Australia's S&P/ASX 200 were last at 8,711, while the cash index closed at 8,731.20. Japan's markets are closed on Monday for a holiday.
Investors are also digesting the Federal Reserve’s rate increase last week, the first in three years, as the U.S. continues to grapple with sticky inflation and elevated bond yields. Oil prices remain near $100 a barrel, while the 10-year Treasury yield is hovering close to 5%.
That backdrop could raise the stakes for this week’s summit between U.S. President Donald Trump and Chinese President Xi Jinping. The agenda includes tariffs, critical minerals, artificial intelligence and other economic issues. Ahead of the visit, Treasury Secretary Scott Bessent is meeting Chinese Vice Premier He Lifeng.
Jeffrey Roach, chief economist at LPL Financial, wrote that the same geopolitical conflict lifting energy prices is also keeping the Federal Reserve hawkish and squeezing Chinese refiners. In his view, [Fed Chairman] Warsh's committee has tied its inflation outlook to calmer oil markets, while Beijing’s fiscal calculations are exposed to the same variable.
Asia-Pacific markets point to a weaker open
CNBC reported that Asia-Pacific markets were set to open broadly lower on Monday as investors assessed mounting Middle East tensions. Futures for Hong Kong Hang Seng index and Australia's S&P/ASX 200 pointed lower, while Japan's markets remained shut for a holiday.
Futures opened little changed in a later update
In a later market update, CNBC said futures opened near flat. Dow Jones Industrial Average futures gained 28 points, or 0.05%, while S&P 500 futures and Nasdaq-100 futures rose 0.09% and 0.05%, respectively.
