Quick overview

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Dow futures are edging lower as heightened geopolitical tensions in the Middle East drive a sharp rally in crude oil, overshadowing optimism ahead of the Q2 corporate earnings season.

Fresh military exchanges between the US and Iran following attacks on shipping vessels in the Strait of Hormuz have spooked global equity markets.: Crude oil prices jumped over 4%, stirring fears of persistent inflation and higher supply-chain costs for industrial and consumer giants.

Big bank earnings start in earnest this week, led by major Dow and financial heavyweights including JPMorgan Chase, Goldman Sachs, Bank of America, Wells Fargo, and Citigroup . Tech and chip giants (ASML, TSMC, Netflix) also report updates later in the week, putting corporate profitability and AI spending under intense scrutiny.

Markets are bracing for the US Consumer Price Index (CPI) report release, which will offer a fresh look at inflationary pressures. Traders are closely watching upcoming Federal Reserve testimonies for clues on whether stubborn inflation will delay anticipated interest rate cuts.

Mixed early earnings reports (such as weakness in major consumer staples like PepsiCo) and anticipation of high-profile global tech listings continue to keep traders cautious ahead of the upcoming wave of corporate reports.