U.S. Stock Futures on the Rise#

U.S. stock futures showed positive movement on Monday, with investors reacting to an ongoing U.S.-Israeli military operation against Iran that has now entered its third week. By early morning, the Dow futures rose by 141 points (0.3%), S&P 500 futures gained 33 points (0.5%), and Nasdaq 100 futures climbed by 131 points (0.5%).

Impact of Oil Prices#

Last week, the main stock averages on Wall Street experienced declines, primarily due to a sharp increase in oil prices. This surge was driven by concerns over global supply issues, particularly related to the Strait of Hormuz. This crucial waterway, located south of Iran, is responsible for about 20% of the world's oil tanker traffic. Currently, it remains largely blocked by Iranian forces, which is disrupting energy supplies and posing risks to the global economy.

Despite efforts by the U.S. to alleviate supply concerns—such as easing some sanctions on Russian oil—crude oil prices have continued to rise. This increase in oil prices is also affecting gasoline prices at the pump, which are significant for inflation and are a key concern for American voters ahead of the upcoming 2026 midterm elections.

Trump's Call for International Support#

President Donald Trump has urged several countries to assist the U.S. in reopening the Strait of Hormuz. However, during a recent press briefing on Air Force One, he did not confirm if any nations had agreed to his request. Trump also emphasized that NATO member countries should support this effort, warning that a lack of response could negatively impact the future of NATO.

He specifically mentioned China, suggesting that he might cancel an upcoming summit with Chinese President Xi Jinping if China does not help resolve the situation. Reports indicate that while some oil tankers heading to China have been allowed passage, others have faced attacks.

Focus on Nvidia's Developer Conference#

In addition to geopolitical tensions, Nvidia CEO Jensen Huang is set to speak at the company's annual developer conference. Investors are eager to learn about new products as Nvidia strives to maintain its leadership in the competitive field of artificial intelligence (AI) chips. The company faces increasing competition in this rapidly growing market, making this conference particularly significant.