Stock futures rose on Sunday evening as traders tried to recover from the S&P 500's weekly loss. Higher oil prices and a broad sell-off drove Friday's decline, and the Federal Reserve's Wednesday decision and Big Tech earnings come next.
S&P 500 futures were up 0.4% on Sunday evening as traders sought to shake off the index's weekly loss. Nasdaq-100 futures gained 0.6%, while Dow Jones Industrial Average futures added 128 points, or 0.2%.
Oil and a broadening sell-off hit all three averages
Rising oil prices and a broadening sell-off that hit many market sectors dragged the three major averages to losses on Friday. The Dow fell more than 650 points, the S&P 500 lost 0.5% and the Nasdaq Composite dropped 0.2%. The sell-off also left the S&P 500 and the Nasdaq with back-to-back weekly losses.
Energy prices rose amid news reports that the U.S. and Israel could be planning attacks on Iran after the midterm elections. Brent crude rose more than 3% to $116.72 a barrel on Friday, its highest settle since April, and West Texas Intermediate rose 3.8% to settle at $103.27 a barrel.
Oil cooled on Sunday evening, which supported equity futures. Brent futures fell 1.1% to trade at around $115 a barrel, and West Texas Intermediate slid 1.2% to roughly $102.
Fed decision and France's rating in focus
Traders are awaiting the Fed's decision on Wednesday. Fed funds futures trading suggests a 90% likelihood that policy makers will hold interest rates at the current target range of 3.75% to 4%. Bank of America, however, expects the Fed will raise rates by a quarter percentage point, noting it would be a "heavy lift" move.
Meanwhile, France got a reprieve after Moody's decided to maintain its Aa3 credit rating and negative outlook. The country's 10-year bond yield had touched 5% last week for the first time since 2002.
Big Tech earnings arrive this week
Alphabet and Microsoft are due to report on Wednesday after the closing bell. Amazon is poised to report Thursday afternoon. In the prior quarter, it lifted its capital expenditures forecast to $220 billion this year.
Source: CNBC
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