U.S. equity futures increased on Sunday evening as investors prepared for the July jobs report and an active week of corporate earnings as August trading commenced. Futures linked to the Dow Jones Industrial Average rose by 200 points, or 0.4%. Meanwhile, S&P 500 futures gained 0.5%, and Nasdaq-100 futures climbed by 0.8%.
In Asia, market reactions differed significantly. Japan’s Nikkei 225 fell by 1.43%, while the Topix index decreased by 1.45%. The Kospi, representing South Korea, dropped 4.57% at the open, and the smaller Kosdaq fell by 1.67%. Australia’s S&P/ASX 200 also recorded a decline of 0.36%.
Following President Donald Trump’s announcement on Sunday that he had cancelled a planned attack on Iran, oil prices saw a downturn. Prior U.S. media reports indicated that the administration was preparing for military action amid dwindling hopes for a diplomatic resolution to the ongoing conflict. As a result, Brent crude futures decreased by $3.52, sitting at $84.41, and U.S. West Texas Intermediate crude fell by $3.49 to $81.18 per barrel.
On Friday, major U.S. stock indices finished on a high note, with the Dow gaining 276.97 points, approximately 0.53%, to close at 52,485.03. The S&P 500 rose by 0.7% to 7,489.72, while the Nasdaq Composite surged 1% to 25,373.85.
As attention turns to future market catalysts, concerns are arising regarding the sustainability of the recent gains, especially with increasing scrutiny on technology companies’ spending without demonstrable earnings growth. Earnings reports from significant firms like McDonald’s, Kraft Heinz, and Disney, alongside vital labour data culminating in the monthly jobs report on Friday, will be pivotal in shaping market sentiment. Current estimates predict the U.S. economy added 87,500 nonfarm payrolls in July, with a potential rise in the unemployment rate to 4.3%.
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