Oil Price Plunge Boosts Stocks Ahead of Busy Week

Stocks are set to open sharply higher as oil prices plummeted more than -8% after the US and Iran refrained from attacking each other for a third consecutive night, easing inflation concerns. The slump in oil prices also boosted investor sentiment ahead of a busy week with major tech earnings and the Fed meeting in focus.

The September S&P 500 E-Mini futures are up +0.98%, while the September Nasdaq 100 E-Mini futures are up +1.59% this morning, pointing to a sharply higher open on Wall Street. The 10-year T-note yield fell four basis points to 4.64%. Meanwhile, Treasuries rose across the curve as a sharp drop in oil prices eased inflation concerns.

Market participants will be closely watching earnings reports from major tech names, including Microsoft (MSFT), Meta Platforms (META), Apple (AAPL), and Amazon.com (AMZN), which are expected to post an average +26% jump in quarterly earnings for Q2 compared to the previous year. The Fed's interest rate decision is also highly anticipated, with economists expecting the central bank to keep the Fed funds rate unchanged.