Dow Jones futures reopen Sunday evening after a week in which the Nasdaq closed just below its early June lows and oil prices jumped. The Federal Reserve meets July 28-29 with a rate hike a possibility, while Apple, Microsoft, Meta Platforms and Amazon headline the biggest week of earnings season.
Dow Jones futures open at 6 p.m. ET on Sunday, along with S&P 500 futures and Nasdaq-100 futures, into a week carrying a Federal Reserve decision, a wave of megacap earnings and continuing U.S.-Iran news.
The stock market rally retreated last week, with losses once again concentrated in tech and AI stocks. The Dow Jones Industrial Average fell 0.4% in last week’s trading, but rose slightly from near the 50-day line on Friday. The S&P 500 index declined 0.6% while the Nasdaq composite tumbled 2.1%, closing just below its early June lows — a bearish sign.
Megacaps led the retreat. Google-parent Alphabet tumbled 7.8% and Tesla stock dived 17.8%, both on cash-burning capital spending.
Oil prices lifted yields and hit stocks
Crude drove the week. U.S. crude oil futures shot up 9.2% to $89.31 a barrel last week, then fell 3.1% on Friday on reports that Pakistan is pushing for new U.S.-Iran talks. Brent crude spiked 9.85% to $96.78 a barrel for the week, retreating from just over $100 on Thursday.
That fed straight into rates. The 10-year Treasury yield leapt 14 basis points to 4.68%, even with Friday’s dip.
Fed decision and hyperscaler capex land in the same week
The Federal Reserve meets on July 28-29, with an interest rate hike a possibility. Markets see about a 38% chance of a hike Wednesday, but the odds rise above 80% by the September meeting.
Earnings arrive alongside it. Microsoft, Meta Platforms and Amazon follow Google this week, with Meta and Microsoft due late Wednesday and Amazon on Thursday night, making their capital spending updates the week’s key question. Apple, which has largely avoided big AI bets, reports Thursday night.
Iran remains the wild card
The Houthis in Yemen fired missiles at Saudi Arabia, attacking a key oil port and refining location and extending a new front in the U.S.-Iran conflict. Amid renewed diplomatic efforts, the U.S. did not conduct any new Iran attacks overnight, ending 13 days of strikes on Iran.
President Donald Trump said Friday night he doesn’t think Iran is ready to make a deal, but added: “I’m willing to listen.” There are reports that the U.S. has proposed a new ceasefire and a return to the memorandum of understanding, with Houthi rebels included.
Source: Investor’s Business Daily
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