U.S. stock futures showed mixed results on Monday; the Dow Jones and S&P 500 indices climbed, while the Nasdaq 100 index dipped, building on the gains seen at Friday’s close.
Geopolitical tensions intensified over the weekend as Iran increased its attacks on shipping vessels near the Strait of Hormuz and issued threats against regional digital infrastructure. Tehran described the U.S. response to its peace terms as “inadequate.” This escalation follows reports that Iran has turned down Washington’s most recent proposals to resolve the conflict, with prediction markets currently indicating a low probability of a near-term diplomatic breakthrough to reopen the strategic waterway.
Wall Street is now shifting its focus toward third-quarter earnings reports. A number of major financial institutions—including JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corp. (NYSE:BAC), Citigroup Inc. (NYSE:C), Wells Fargo & Company (NYSE:WFC), Morgan Stanley (NYSE:MS), and Goldman Sachs Group Inc. (NYSE:GS)—are scheduled to disclose their latest financial results throughout the week.
While the equity markets remain open, the bond market is shuttered on Monday in observance of Columbus Day. Later in the week, Consumer Price Index (CPI) inflation report, retail sales data, and the Federal Reserve’s Beige Book.
As of Friday’s close, the 10-year Treasury bond yield was at 5.24%, while the 2-year Treasury bond yield sat at 4.79%.
