US stock futures were little changed on Monday after a four-week rally, starting a busy week of corporate earnings and the US central bank’s policy meeting with a relative calm while investors monitor the reopening of the Strait of Hormuz amid stalled Iran peace talks.
Futures for the S&P 500 Index were flat as of 7 a.m. in New York while those on the tech-heavy Nasdaq 100 Index were up 0.2%, led higher by Qualcomm Inc. Brent crude rose 1% to around $107 per barrel while the Cboe Volatility Index hovered at 19.
Wall Street’s biggest technology stocks, which have helped power the S&P 500 Index’s 10% gain this month, are set to release their financial results. Amazon.com Inc., Alphabet Inc., Meta Platforms Inc. and Microsoft Corp. are due to report on Wednesday followed by Apple Inc. a day later. All told, these companies represent a quarter of the S&P 500 Index’s market capitalization.
“What we have seen is that the earnings story is simply there for the AI trade,” said Lori Calvasina, RBC head of US equity strategies, adding that she doesn’t see any residual damage coming out of the Iran war “hitting the earnings of the AI and tech trade that much” while materials, industrials, and consumer discretionary and consumer staples may be affected.
Another focus for investors is a record rally by chip stocks. The Philadelphia Stock Exchange Semiconductor Index, known as the SOX, rose for a 18th-straight session, propelled in part by Intel Corp.’s blockbuster sales forecast. The latest results from some of US hyperscalers this week could provide more fuels to their strong run.
Meanwhile, Axios reported on Sunday that Iran has given the US a new proposal to reopen the Strait of Hormuz and end the war that includes postponing nuclear negotiations. The plan also calls for extending the ceasefire. The report came after President Donald Trump canceled a planned trip to Pakistan by two of his main envoys.
