US Futures Rise; Oil Up on Geopolitical Tensions; Earnings Mixed

Lead US equity futures are trading higher this morning, with S&P 500 futures up 0.15% and Nasdaq futures advancing 0.73%. This positive sentiment comes despite mixed corporate earnings reports and escalating geopolitical tensions in the Middle East, which are pushing crude oil prices higher. Brent crude has gained 2.35%, while WTI crude is up 1.90%. Session narrative European markets showed a mixed performance earlier, setting a somewhat cautious tone for the US session. However, US equity futures have found upward momentum. The primary catalyst for the rise in oil prices appears to be heightened geopolitical risk, with Iran threatening US warships in the Strait of Hormuz and discussions about potential control over the vital shipping lane. Qatar has indicated that efforts are ongoing for a US-Iran resolution, with language for a possible deal already drafted. In the broader market, the US Dollar Index is showing a slight gain of 0.10%, while the US 10-year yield has declined by 1.24%. Corporate earnings are a significant focus, with Caterpillar reporting a record quarter and raising its outlook, and Pfizer affirming its FY2026 EPS guidance while raising sales guidance. Conversely, a number of companies are experiencing substantial stock declines. Intuit is down 20% on pricing issues, Planet Fitness has dropped 31% due to growth concerns, and Embecta plunged 57% on insulin pen issues. Microsoft is also facing a securities fraud class action related to Copilot issues. Cross-asset check In equities, S&P 500 futures are up 0.15% to 7640, and Nasdaq futures are up 0.73% to 29103. The Russell futures are nearly flat, down 0.02%. The VIX is down 1.01% to 15.7. In fixed income, the US 10-year yield is down 1.24% to 4.69%. In currencies, the US Dollar Index is up 0.10% to 100, while EUR/USD is down 0.01% to 1.1513 and USD/JPY is up 0.43% to 157.873. Commodities are seeing significant movement, with Brent crude up 2.35% to 85.74 and WTI crude up 1.90% to 81.87. Gold is up 0.39% to 4106.3, and silver has gained 1.78% to 58.89. Natural gas is down 1.58%. Themes & continuing stories Geopolitical tensions in the Middle East are a dominant theme, directly impacting energy markets and contributing to broader market uncertainty. The ongoing corporate earnings season continues to generate significant individual stock volatility and shape sector performance. Several companies are also grappling with legal challenges, including securities fraud class actions, adding another layer of risk for investors. What’s ahead Traders will continue to monitor developments in the Middle East for any escalation or de-escalation of tensions. The flow of corporate earnings reports will also remain a key focus, with individual company performance likely to drive stock-specific movements. Any further macro data releases or central bank commentary will also be closely watched for clues on monetary policy and economic outlook.