S&P 500 Futures Rise as Banks Prepare to Report Earnings

U.S. stock futures moved higher early Monday as investors prepared for third-quarter earnings from major banks and fresh inflation data, while geopolitical tensions in the Middle East continued to influence global markets. The gains followed a positive week on Wall Street, with technology shares helping major indexes withstand rising oil prices and Treasury yields.

According to market data, S&P 500 futures rose 0.33%, Nasdaq 100 futures advanced 0.45%, and Dow Jones Industrial Average futures gained 184 points, or 0.35%.

The Dow and S&P 500 each recorded their second winning week in three, while the Nasdaq Composite extended its winning streak to four consecutive weeks. Investors are looking to corporate earnings for evidence that businesses can maintain growth despite higher fuel and borrowing costs.

FactSet analyst John Butters projected that S&P 500 companies would deliver 29.6% earnings growth for the quarter. If achieved, that would mark the index's fourth consecutive quarter of earnings growth above 25%, supported by investment in artificial intelligence data centers.

However, corporate executives' assessments of operating conditions are expected to receive particular attention as investors evaluate the effects of energy costs, interest rates, and geopolitical uncertainty. Brent crude futures recently traded above $104 a barrel, while the 10-year Treasury yield surpassed levels last seen in 2002 during the previous week.

Brian Leonard, portfolio manager of Keeley Gabelli Small Cap Dividend Fund, said investors were concentrating on companies' ability to manage difficult conditions while maintaining profitability and growth.

"Investors have kind of narrowed in on some of the important aspects," said Brian Leonard, portfolio manager of Keeley Gabelli Small Cap Dividend Fund (KSDIX).

Leonard emphasized that investors would assess whether companies could withstand current pressures, pass on higher costs, and sustain improving margins while delivering stronger future performance.

"Can this company withstand what's happening? Pass along, continue to grow margins, and the future is going to be better than the most recent past." Leonard said.

The earnings calendar becomes busier this week, with Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and Wells Fargo expected to release results. September consumer and producer price indexes are scheduled for release Wednesday and Thursday, respectively.

Geopolitical developments also weighed on investor sentiment. President Donald Trump told reporters over the weekend that he was considering joining Saudi Arabia in its fight against Tehran-backed Houthis in Yemen following another deadly attack on Riyadh's international airport. The remarks raised concerns about a possible escalation in regional tensions.

Oil prices nevertheless declined in Asian trading Monday after Trump announced an "energy ceasefire" between Russia and Ukraine over the weekend.

Asian markets finished mostly lower. South Korea's Kospi fell 3.65% to 6,384.24, while the small-cap Kosdaq dropped 4.83% to 849.19. China's CSI 300 declined 0.68% to 4,287.98, while Australia's S&P/ASX 200 rose 0.76% to 8,783.20. Hong Kong's Hang Seng was marginally higher during its final trading hour, and Japanese markets were closed for a holiday.

European shares opened higher, with the Stoxx Europe 600 gaining 0.45%. Banks advanced 1.39%, automakers rose 1.11%, and utilities added 0.94%, while oil and gas stocks slipped 0.30% and technology shares declined 0.28%. Italy's FTSE MIB climbed 1.21%, Germany's DAX gained 0.40%, the U.K.'s FTSE 100 rose 0.38%, and France's CAC 40 advanced 0.33%.

European automakers also benefited from an agreement between the European Union and China to reduce the number of hybrid cars China exports to the bloc. Renault shares rose nearly 3.1%, while Stellantis gained 2.7%. Automotive suppliers Valeo and Forvia advanced 2% and 1.2%, respectively.

Volkswagen reported delivering 6 million vehicles during the first nine months of the year, down 9% from the same period in 2025. Third-quarter deliveries fell 14.3% year over year, with sales in China plunging 38.5% to 405,800 vehicles. North American deliveries declined 5.8% to 232,000, while western European deliveries slipped 2.8% to 780,000. Central and eastern European deliveries increased 1.4% to 135,000.

Martin Sander, a member of Volkswagen's extended executive committee for sales, described China's market downturn as a broader challenge for the automotive industry and noted a faster transition toward electric vehicles in Germany. He said higher fuel prices had contributed to the shift, with fully electric models accounting for about 40% of Volkswagen's European order book. Volkswagen shares rose 1.4% in early trading.