Investing.com– U.S. stock index futures were little changed on Monday evening after a strong session on Wall Street, as investors shrugged off escalating tensions in the Middle East and turned their focus to upcoming bank earnings.
S&P 500 Futures inched 0.1% higher to 6,928.25 points, while rose 0.2% to 25,600.75 points by 19:58 ET (23:58 GMT). Dow Jones Futures were largely muted at 48,434.0 points.
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Wall St erases Iran war losses despite failed weekend talks
In the regular session, all three major U.S. indexes ended higher, with gains accelerating into the close.
The S&P 500 climbed about 1.0%, the NASDAQ Composite advanced 1.2%, and the rose 0.6%, marking a sharp late-session rebound led by technology stocks.
The rally pushed the S&P 500 to its highest level since before the Iran war began, meaning the benchmark index has now fully erased losses incurred during the conflict.
Sentiment remained tied to the evolving U.S.-Iran conflict after weekend talks aimed at ending the war broke down without a resolution.
U.S. President Donald Trump said Iran was seeking to make a deal, but reiterated that Washington would not agree to any arrangement that allows Tehran to possess a nuclear weapon.
This came after Trump announced that the U.S. military had begun a blockade of ships leaving Iranian ports. In response, Tehran warned it could retaliate against ports in neighboring Gulf countries.
“Whilst headlines offer little reason for optimism, markets seem to take more of a wait-and-see approach rather than assuming what will happen. If anything, the glass is still half-full when looking at risk assets,” ING analysts said in a note.
JPMorgan, Wells Fargo earnings on tap
Attention is now turning to Tuesday’s session, when major U.S. banks, including JPMorgan Chase (NYSE:JPM) and , are scheduled to report, with investors closely watching for signals on loan growth, trading activity, and the impact of elevated interest rates.
These results will follow a mixed earnings report from Goldman Sachs (NYSE:GS), where weaker trading revenue weighed on overall performance.
Oil prices also remained in focus after briefly surging on news of the blockade, fueling concerns about inflation and the potential impact of higher energy costs on corporate margins.
While Monday’s gains suggest investors are willing to look past geopolitical uncertainty for now, market participants remain cautious that any further escalation in the conflict or disappointing earnings could quickly reignite volatility.