US stock futures muted as oil stays above $100 ahead of earnings

On Monday, US stock futures remained relatively stable as investors kept a close eye on oil prices and geopolitical factors before crucial bank earnings and inflation statistics are released this week. Oil prices fluctuated, with Brent crude staying above $100 a barrel due to continued clashes in the Middle East, despite a deal between Ukraine and Russia to cease attacks on each other's energy infrastructure.

However, the ongoing Houthi conflict in Yemen has undermined any optimism that President Trump's agreement with Putin could drive down prices. Analysts anticipate that earnings season will play a significant role in shaping market sentiment, with major US banks expected to announce their first-quarter results starting Tuesday. Meanwhile, S&P 500 earnings are projected to rise by 30.6% in the third quarter, as per LSEG IBES data.

The Dow E-minis opened at 42 points, or 0.08%, higher, while the S&P 500 E-minis gained 9.75 points, or 0.12%, and the Nasdaq 100 E-minis dropped 14.75 points, or 0.05%. Last week, all three indexes closed higher, buoyed by expectations of an earnings-driven third quarter and the possibility that the Fed may refrain from rate hikes, tempering the impact of volatile oil and Treasury markets.

Treasury yields reached a 24-year high earlier this month, as high energy costs fueled concerns about persistent inflation, potentially leading the Federal Reserve to maintain a cautious stance and exert downward pressure on equity valuations. Investors will also be monitoring US consumer and producer price data, as well as retail sales figures throughout the week, as higher energy prices are projected to lift headline CPI by 0.6% month-over-month and 3.7% annually, while core inflation is expected to increase by a more modest 0.2% monthly and 2.5% annually.

Currently, there is only a 19% chance that the Federal Reserve will raise interest rates this month, according to CME's FedWatch tool. In premarket trading, shares of IREN surged by 5.4% following a report from The Information that Anthropic had entered into a multi-year cloud agreement with the data-center firm.