U.S. equity futures are higher as hopes for renewed U.S.-Iran negotiations push oil sharply lower and ease near-term inflation concerns. At 5:29 a.m. ET, Dow futures were up 0.63%, S&P 500 futures were up 0.49% and Nasdaq 100 futures were up 0.53%. The Russell 2000 proxy IWM was roughly unchanged in the latest premarket trade. The early setup favors consumer, travel and rate-sensitive exposures, while Energy faces pressure from crude’s reversal.
U.S. equities finished higher Friday, with the S&P 500 gaining 0.70%, the Dow rising 0.53% and the Nasdaq advancing 1.00%. The Russell 2000 declined 0.50%, leaving small caps behind the Amazon-led large-cap rally. Amazon surged more than 15% after strong AWS results, while Apple’s 7.4% decline limited Technology-sector performance. Consolidated U.S. volume was heavy at 20.6 billion shares, compared with the prior 20-session average of 17.1 billion.
Treasury yields moved higher Friday, with the 2-year yield up 4 basis points to 4.27%, the 10-year up 5 basis points to 4.71% and the 30-year up 4 basis points to 5.25%. Yields are easing this morning as lower oil reduces inflation pressure, with the 10-year near 4.69% and the 30-year around 5.23%.
The DXY ended Friday at 99.91, while the euro traded at $1.1530, sterling at $1.3475 and the dollar at ¥159.16. The yen strengthened further Monday to around ¥156.70 after the United States and Japan confirmed coordinated intervention to support the currency. The dollar weakened more broadly as reduced geopolitical risk lowered safe-haven demand.
September WTI crude gained 1.29% Friday to $84.67, while December gold fell 1.37% to $4,103.60. Oil is reversing sharply this morning, with WTI down about 6% toward $79.50 and Brent down 5.7% near $83.77 after President Trump delayed further strikes and said talks with Iran would take place Monday. Spot gold rose 0.4% to approximately $4,055, supported by the weaker dollar and lower Treasury yields.
Friday’s economic data showed moderate wage pressure but no clear labor-cost acceleration. The Employment Cost Index rose 0.9% during the second quarter, slightly above expectations, while annual compensation growth held at 3.4%. Final July consumer sentiment improved to 55.2 from 49.5, while one-year inflation expectations eased to 4.2% and five-year expectations held at 3.3%.
Monday’s main releases are the final July manufacturing PMI, ISM Manufacturing at 10:00 a.m. ET and June construction spending. ISM Manufacturing is expected to ease to approximately 52.8 from 53.3, remaining in expansion territory, while construction spending is expected to increase around 0.6%. The broader week includes JOLTS, ADP employment and Friday’s July payroll report.
Sector Highlights
Friday’s sector performance was highly concentrated. Consumer Discretionary surged 6.07% and Communication Services gained 4.60%, followed by Industrials +0.79% and Energy +0.78%. The weakest groups were Materials -2.71%, Utilities -0.74%, Real Estate -0.68%, Health Care -0.55%, Technology -0.54%, Consumer Staples -0.37% and Financials -0.13%. Breadth was weaker than the major-index gains suggested, with decliners leading by 1.11:1 on the NYSE and 1.24:1 on the Nasdaq.
Health Care
- Bristol Myers Squibb (BMY +8% premarket) surged following reports that it held preliminary merger discussions with AstraZeneca that could create a pharmaceutical company valued near $400 billion.
- AstraZeneca (AZN -6%) declined as investors questioned the strategic and financial rationale for a potential megamerger. No final agreement has been announced.
Information Technology
- Palantir Technologies (PLTR +2.5% premarket) reports after the close. Investors will focus on U.S. commercial growth, government-contract momentum and whether results can support the stock’s elevated valuation.
- Micron Technology (MU -1.3% premarket) weakened after Reuters reported that Chinese competitor CXMT is considering a second Beijing memory-chip facility, potentially adding supply and competitive pressure.
- Apple (AAPL -7.4% Friday) sold off after warning that component constraints could restrict near-term growth and after management issued a revenue outlook below expectations.
- Monolithic Power Systems (MPWR +8%) advanced after forecasting third-quarter revenue above consensus.
Consumer Discretionary
- Amazon (AMZN +15.3% Friday) posted its strongest quarterly revenue growth in more than four years, with accelerating AWS demand providing evidence that AI infrastructure investment is translating into cloud revenue.
- Marriott International (MAR) reports before the open, with room demand, pricing, international travel and full-year guidance likely to drive the reaction.
Industrials
- SpaceX (SPCX +0.3% premarket) reports Tuesday in its first quarterly update since going public. Starlink growth, AI-related spending and profitability will be the primary focus.
Consumer Staples
- Tyson Foods (TSN) reports before the open, with beef margins, chicken pricing and demand for prepared foods likely to determine whether its recent operating improvement can continue.
