US Stock Market: Nasdaq, S&P 500, Dow Jones Futures Jump; Will Wall Street Rise Or Fall On Monday?

The Nasdaq Composite futures surged by 220 points or 0.82% to trade around 28,636 on Sunday. While the Dow Jones Industrial Average Index Futures gained by 241 points or 0.46% to trade around 52,875.

Additionally, the S&P 500 index upped by 37.25 points or 0.50% to trade around 7,557.75.

US stock futures edged higher on Monday as investors prepared for another wave of corporate earnings that could provide fresh clues on the strength of the economy and serve as new catalysts for the artificial intelligence trade, as per Trading Economics data.

This week, a host of large-cap companies like Berkshire Hathaway, Eli Lilly, Caterpillar, McDonald's, and Walt Disney, among others, will declare their quarterly earnings report. In the technology basket, companies like Palantir, Advanced Micro Devices, and SpaceX are also scheduled to release their results.

This will be SpaceX's first quarterly earnings since listing. Last month, the Elon Musk's rocket stock has crashed by over 33% on Nasdaq.

In the global market, on the other side, crude oil prices dropped 5-6% in the early hours of Monday. US WTI crude oil futures plunged by over 5.3% to trade around $80.15 per barrel, while Brent Crude crashed nearly 5% to trade near $84 per barrel, at the time of writing. Oil prices are still elevated.

Along similar lines, the US dollar dipped below 99.5 in early trade on Monday, extending its losses for fifth session straight after Japan stated it had carried out coordinated yen-buying operations with the US. The Bank of Japan data indicated the country has likely spent as much as $58.97 billion on Thursday.

US Stock Market August 3 Predictions:

Last week, on July 31st, the DJIA closed at 276.97 points, or 0.53% higher, at 52,485.03, while the S&P 500 index rose by 52.09 points, or 0.70%, to end at 7,489.72. A strong rally was also seen in the Nasdaq Composite on Friday, which surged by 251.68 points, or 1%, to end the month at 25,373.85.

On Monday, Wall Street will react to the steep correction in dollar and oil prices. The US Treasury yield of 10-year benchmark has also eased to 4.70%. Further, the US and Iran's negotiation saga will continue to play a role in defining market trends.

However, markets overseas are showing a mixed trend to Monday's trade.

"The global backdrop remains mixed. Most Asian equity markets are trading lower in early trade, with Japan's Nikkei 225 falling more than 2% and South Korea's Kospi declining over 3%, as investors remain cautious despite the pullback in oil prices," said Ponmudi R, CEO of Enrich Money.

Also, Hariselvan Radhakrishnan, Founder & CEO of HST Wealth said, "investors also remain mindful that the broader macro backdrop has yet to turn decisively benign. Although crude oil prices have retreated from recent highs, geopolitical tensions in the Middle East remain unresolved, disruptions to key global shipping routes continue to cloud the outlook for global trade..."

The Trading Economics data also added, investors will also monitor a packed schedule of labor market data, highlighted by Friday's closely watched monthly US jobs report. Meanwhile, oil prices declined after President Donald Trump said peace talks with Iran will resume today following his decision to cancel a planned strike on the Islamic Republic. The major indexes are coming off a volatile month, marked by a steep selloff in semiconductor and other AI-related stocks as investors rotated into software companies and other areas of the market.

Among economic data, focus will be on Construction Spending and ISM Manufacturing Index who are scheduled to release on August 3.

In terms of earnings, companies that will be in focus are --- CNA Financial Corp. (CNA), CNH Industries NV (CNH), Diamondback Energy Inc. (FANG), Ecopetrol SA (EC), Hess Midstream LP (HESM), Krystal Biotech Inc. (KRYS), Marriott International Inc. (MAR), ONEOK Inc. (OKE), Palantir Technologies Inc. (PLTR), Tyson Foods Inc. (TSN), and Vertex Pharmaceuticals Inc. (VRTX).