US Stock Futures Rally as Oil Prices Drop Ahead of Fed Meeting and Big Tech Earnings

U.S. stock index futures surged Sunday night as easing geopolitical tensions in the Middle East pushed oil prices sharply lower, boosting investor sentiment ahead of a critical week featuring the Federal Reserve's policy meeting, major technology earnings, and key U.S. economic data.

As of 8:43 p.m. ET, S&P 500 Futures climbed 0.7% to 7,499.25, Nasdaq 100 Futures jumped 1.3% to 28,635.75, and Dow Jones Futures gained 0.6% to 52,410. Despite the upbeat start to the week, Wall Street closed Friday with mixed results, and all three major indexes ended the previous week in negative territory. The Nasdaq Composite fell roughly 2.1%, while the S&P 500 and Dow Jones Industrial Average declined 0.6% and 0.4%, respectively.

Investor confidence improved after President Donald Trump paused U.S. military strikes against Iran late Friday, ending a 13-day bombing campaign to allow diplomatic negotiations to move forward. Over the weekend, neither the U.S. nor Iran launched new attacks, easing concerns about a broader regional conflict.

The temporary ceasefire triggered a sharp decline in oil prices, with Brent crude and U.S. crude both dropping more than 5% during Asian trading. Lower energy prices reduced fears of renewed inflationary pressure, offering markets optimism that the Federal Reserve's policy path may become less complicated.

Markets are now focused on the Fed's two-day policy meeting, which concludes Wednesday. While policymakers are widely expected to keep interest rates unchanged, investors will closely monitor Fed Chair Kevin Warsh's remarks for signals on future rate cuts and the central bank's inflation outlook.

The week also features earnings reports from major technology companies, including Apple, Microsoft, Amazon, and Meta Platforms. Investors will be watching for updates on artificial intelligence investments, cloud computing demand, and capital spending after concerns over rising AI-related costs recently pressured tech stocks.

Additional market-moving events include the release of second-quarter U.S. GDP figures and the Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve's preferred inflation measure, both of which could influence expectations for future monetary policy.