United States stock futures moved higher on Sunday evening (Monday AEST) as investors assessed renewed military tensions between the United States and Iran, while preparing for a week featuring closely watched employment data and the start of another earnings reporting period.
By 9:40 am AEST (11:40 pm GMT), Dow Jones Industrial Average futures were up 0.4%, S&P 500 futures gained 0.7%, and Nasdaq-100 futures advanced 1%.
Market sentiment remained cautious after the United States launched strikes against Iranian military targets over the weekend in response to Tehran's latest attacks on shipping in the Strait of Hormuz.
U.S. President Donald Trump confirmed the military action in a post on Truth Social.
"United States aircraft just struck Iranian missile and drone storage locations, and coastal radar sites, for violating the Cease Fire Agreement, AGAIN!"
Oil prices rose in early trading as investors weighed the possibility of further disruptions to global energy supplies. Brent crude climbed 0.8% to US$72.57 a barrel, while U.S. West Texas Intermediate crude gained 1.1% to $70 a barrel.
Wall Street enters the new week following a mixed performance, with investors rotating out of technology stocks and into more defensive sectors.
The S&P 500 fell almost 2% last week, while the Nasdaq Composite declined 4.6%, as several of the largest technology companies came under pressure.
Nvidia and Alphabet both lost more than 8%, while Meta Platforms, Apple and Amazon each fell more than 4%. SpaceX shares also tumbled 17%.
In contrast, the Dow Jones Industrial Average rose 0.6% over the week, benefiting from its lower exposure to technology companies.
Healthcare stocks led the advance, with Merck climbing 13% and Johnson & Johnson adding 11.5%.
Attention this week will centre on the U.S. nonfarm payrolls report, which is expected to provide fresh insight into the strength of the labour market.
A stronger-than-expected result could reinforce expectations for near-term Federal Reserve interest rate hikes, potentially adding further volatility to equity markets already unsettled by recent swings in technology shares.
Investors will also monitor quarterly earnings from sportswear company Nike, ahead of a broader acceleration in second-quarter corporate reporting later in July.
