US stocks rally as oil falls to one-week low
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The news: US stock futures rallied on Monday evening after Brent crude fell 7.5%, with investors welcoming a pause in fighting between the US and Iran.
The numbers: S&P 500 futures rose 0.9% ahead of the US market open, while Nasdaq futures gained 1.5% and Dow futures climbed 1.1%. Brent briefly fell as much as 9.5% to USD87.55, from its previous close of USD96.78.
The context: Oil has retreated from more than USD100 a barrel as fighting between the United States and Iran has eased in recent days. Prices are now at their lowest level since July 20.
However, commodity traders remain cautious as oil is unlikely to flow freely through the Strait of Hormuz without a formal ceasefire agreement, Reuters reported.
Equity investors are also looking ahead to a wave of second-quarter earnings later this week, including results from technology giants Microsoft, Meta, Apple and Amazon.
