S&P futures experienced a modest increase as the market sought to rebound from yet another week of losses, with investors keeping a close eye on oil prices and the latest updates regarding the U.S.-Iran conflict. Futures for the Dow Jones Industrial Average increased by 105 points, representing a 0.2% rise. Futures for the S&P 500 increased by 0.4%, while those for the Nasdaq-100 saw a rise of 0.5%. The recent developments follow the S&P 500 experiencing its third consecutive week of losses, culminating in a closing figure that marks the lowest point of the year on Friday. The benchmark index concluded the week with a decline of 1.6%, whereas the Dow and Nasdaq experienced reductions of approximately 2% and 1.3%, respectively.

Last week, oil prices experienced a notable increase, as Brent crude closed above $100 per barrel for the first time since 2022. Crude prices surged as maritime activity in the Strait of Hormuz, a vital conduit for global trade, has been significantly disrupted since the onset of the conflict. In early Monday trading, WTI crude exhibited a decline of 0.4%, settling at $98.36. It experienced a trading level exceeding $100 per barrel overnight. Brent crude experienced an increase of 0.9%, reaching a price of $104.03. On Friday, President Donald Trump authorized military strikes targeting Iranian assets situated on Kharg Island. Although the attack did not affect oil infrastructure, Trump indicated that the U.S. would contemplate targeting those facilities should Iran persist in obstructing the Strait. Trump also stated over the weekend that Iran is interested in reaching an agreement, but he is not prepared at this time.

At the start of the week, sentiment may have been bolstered by a report indicating that the U.S. is poised to announce a coalition of nations tasked with escorting vessels through the Strait of Hormuz, according to officials. The recent stock sell-off has been notably subdued in light of ongoing geopolitical tensions. The S&P 500 is currently positioned approximately 5% beneath its historical peak established earlier this year. “The apparent resilience in the S&P 500 is attributable to the increasing bullishness of industry analysts’ consensus estimates for earnings per share in 2026 and 2027,” stated Ed Yardeni.

“It seems they were unaware of the potential adverse effects stemming from an extended conflict and the blockade of the Strait.” In addition to oil and the ongoing conflict, investors are expected to monitor Nvidia closely, as the chipmaker’s GTC conference is set to commence on Monday. The Federal Reserve is poised to conduct its second monetary policy meeting of the year, with expectations indicating that interest rates will remain unchanged.