Oil Prices Surge as Fed Meeting Looms with Key Earnings Reports

The US stock market had a lackluster week, with the S&P 500 closing at 7,411.98 on Friday, down 0.6% from last week, while the Dow Jones fell 2.1%. Oil prices were the main story, surging 7% on Thursday to reach $100.69 per barrel, its first close above $100 since May 26, after Yemen's Houthi militants claimed strikes on two Saudi oil tankers in the Red Sea.

President Trump warned that the US would hold Iran responsible for any further attacks on shipping and threatened 'major military punishment' against Tehran. However, big tech companies Alphabet and Tesla fell sharply after reporting negative free cash flow, raising concerns about their financial health.

This week is packed with earnings reports from major companies, including four Magnificent-7 companies that account for 17% of the S&P 500's market capitalization. The Federal Reserve's two-day meeting concludes on Wednesday, and Chair Kevin Warsh will hold a press conference to discuss policy changes. The federal funds rate futures market is signaling two hikes over the next 6-12 months.