US stock futures dropped in thin trading with most traders out as summer draws to a close, while oil prices jumped after the US and Iran exchanged attacks for first time in weeks. Brent futures rallied almost 4% topping $90-handle and WTI contracts rise above $86 a barrel. As of 8:00am ET, S&P futures dropped about 0.2% and contracts on the Nasdaq 100 dipped 0.1% as most Mag 7 stocks drop while energy stocks rise (CVX +2%, XOM +2%) with as tensions resume in the Middle East. Europe’s benchmark Stoxx 600 equity index edged 0.2% lower, with UK markets closed for a holiday. Asian equities fall across the region. Nikkei sheds almost 1% while the Kospi closed flat, reversing an earlier loss. Hang Seng drifts 0.7% lower and ChiNext is down 1.3%. The dollar weakens against most FX majors. The yen strengthens back below 160/USD following Treasury Secretary Bessent’s BOJ remarks. Offshore yuan is 0.1% firmer after a small manufacturing PMI beat. Treasury 10-year yields are flat at 4.72% after Friday's post J-Hole blowout as the curve bull steepens despite higher energy prices. In commodities, the overnight Middle East attacks are driving oil prices higher with WTI above $85/bbl and Brent above $90/bbl. Elsewhere base metals are outperforming precious even as gold recovered from a $50 drop to trade unchanged around $4,460 an ounce. This week’s macro data include ISM / NFP with NFP one of 2 key prints (CPI) for the Fed to determine a Sept hike. Stronger ISM may boost the broadening portion of the rally. AVGO earnings may boost the Tech / AI theme.
- In premarket trading, Mag 7 stocks are mostly lower with the exception of NVDA which rises 0.6% after Friday's slide (Apple -0.3%, Meta -0.1%, Amazon -0.4
