Stocks rise and oil slips on Middle East diplomacy efforts ahead of Big Tech earnings
SPY•Global stocks rose and Brent crude fell 1% to $114.74 a barrel as investors watched Middle East diplomacy and awaited Big Tech earnings. More than a third of S&P 500 companies are expected to report this week, while economists expect the Fed, ECB and BOJ to hold rates steady.
1. Markets edge higher
Global stocks rose and oil prices slipped as investors weighed efforts to end the Middle East conflict ahead of US Big Tech earnings and central bank meetings. Brent crude fell 1% to $114.74 a barrel, Europe's STOXX 600 edged up 0.1%, and S&P 500 and Nasdaq futures gained 0.2% and 0.3%, respectively.
2. Earnings in focus
More than a third of S&P 500 companies are expected to report this week. Coca-Cola and United Parcel Service raised forecasts, while Hilton and JetBlue reports reflected rising costs linked to the Middle East conflict. Investors are looking to Microsoft, Amazon and Alphabet results later in the week for signs that their AI investments are generating expected returns.
3. Rates and policy outlook
Economists expect the Federal Reserve, European Central Bank and Bank of Japan to leave interest rates unchanged this week, with investors focused on policymakers' comments. The US 10-year Treasury yield was steady at 4.974%, while traders were pricing in a Fed rate increase in December.
