Nasdaq, S&P 500, Dow Futures Rise As Iran Pause Eases Oil Fears Ahead Of Big Tech Earnings, Fed Meeting: ORCL, NVDA, VG, DEL In Focus

U.S. stock futures moved higher in overnight trading on Sunday after the United States and Iran paused military strikes over the weekend, sending oil prices sharply lower. Investors also turned their attention to a busy week ahead, with earnings from four “Magnificent Seven” companies and the Federal Reserve’s July policy meeting expected to drive market sentiment.

U.S. stock markets ended mixed on Friday, with the Nasdaq Composite declining 0.64% at close, while the S&P 500 and the Dow Jones Industrial Average closed up 0.05% and 0.46% higher, respectively.

All three major indexes clocked declines as the conflict between the U.S. and Iran increased oil prices and dragged markets lower. The Nasdaq led the declines, falling more than 2% last week, while the S&P 500 and Dow indexes fell about 0.61% and 0.38%, respectively.

While the Nasdaq and S&P 500 declined for a second consecutive week, the Dow notched a third streak of declines.

Investors will be watching capital spending plans closely as concerns over heavy AI spending resurfaced after Alphabet Inc.'s (GOOG, GOOGL) results last week, stoking concerns about whether the increasing spending can translate into meaningful growth.

The earnings updates could also set the tone for semiconductor stocks, which have been among the biggest beneficiaries of the AI investment boom. For context, the VanEck Semiconductor ETF (SMH) and the iShares Semiconductor ETF (SOXX) have gained two out of four weeks this quarter.

Meanwhile, oil prices are on the decline overnight following a week of steep climbs, with Brent crude prices topping $100 a barrel last week.

Over the weekend, Iran has reportedly said it will pause its own ​attacks against the U.S. as long as the American military does the same. U.S. Ambassador to the United Nations Mike Waltz told the media on Sunday that U.S. President Donald Trump has decided to pause U.S. strikes on Iran to provide additional time for diplomatic efforts.

Brett Erickson, managing principal at Obsidian Risk Advisors, however, warned on X that “Trump in no way is indicating that he’s close to accepting reality and agreeing to a deal that is realistic AND seeing it through. There is a huge difference between ‘not recklessly escalating’ and ‘making the necessary concessions to end the war’.”

Meanwhile, on the economic front, personal consumption expenditures price index for June, and second-quarter gross domestic product growth are expected from the Bureau of Economic Analysis.

Additionally, the Federal Reserve is scheduled to meet later this week to decide on its July policy. According to the CME FedWatch tool, the probability of a rate hike in the session is at 36.3%, up from 12.8% a week ago.

Oracle Corp. (ORCL): Shares of the hyperscaler jumped onto the retail radar amid reports that Nvidia Corp. (NVDA) is in conversation to provide a roughly $250 billion backstop for OpenAI as part of a massive data-center project. Oracle has a major AI infrastructure partnership with OpenAI.