Nasdaq leads US futures higher ahead of key data, Big Tech gains

U.S. stock futures rose on Monday as fears of war in the Middle East eased ahead of a crucial week packed with Big Tech earnings, an inflation update and a crucial monthly jobs report.

Contracts on the tech-heavy Nasdaq 100 (NQ=F) rose about 0.7%, while S&P 500 futures (ES=F) rose 0.5%. Dow Jones Industrial Average futures (YM=F) also rose about 0.5%.

The market was buoyed by relief that Israel limited its retaliatory attacks on Iran to military targets, and not to oil or nuclear facilities, as feared. Oil futures fell more than 6%, sending Brent (BZ=F) down to near $71 a barrel and West Texas Intermediate (CL=F) near $67.

The focus is on technology stocks, with five of the ‘Magnificent Seven’ megacaps reporting earnings this week after the Nasdaq Composite (^IXIC) broke Friday’s losing trend to close at a near record.

Investors are looking to the results of Alphabet (GOOGL, GOOG), Apple (AAPL), Amazon (AMZN), Microsoft (MSFT) and Meta (META) to help the S&P 500 soar to new heights as well. But questions remain about whether Big Tech’s investments in AI are paying off. Some on Wall Street expect the slowest earnings growth for tech megacaps in six quarters.

The reports cap a very busy week of results, with about 170 of the S&P 500 expected to report. Shares of Philips (PHG) fell 16% in premarket trading after the medical device maker cut its full-year sales outlook, citing a sharp decline in Chinese demand. Ford (F) is also scheduled for Monday.

At the same time, investors are bracing for a flurry of economic data that could test bets on a “soft landing.” In the foreground are the latest data on the Federal Reserve’s preferred inflation gauge and the October jobs report – both seen as crucial to policymakers’ decision on whether to cut rates at their November meeting.

Read more: What the Fed’s interest rate cut means for bank accounts, CDs, loans and credit cards

Elsewhere, shares in Japan rallied after the country’s ruling party failed to hold on to its majority in Sunday’s election – underscoring the political risks to markets with the US presidential election just days away.