US stocks gained on Monday as investors assessed rising oil prices and geopolitical tensions ahead of a busy week of corporate earnings and inflation data that could influence the Federal Reserve’s interest rate outlook.
The Dow Jones Industrial Average gained 198 points while the S&P 500 was up 0.05%. The Nasdaq Composite fell 0.13%.
Investors are preparing for results from major US banks and the release of September consumer and producer price indexes.
Retail sales figures are also due this week, offering further insight into the health of the US economy.
Oil prices rise amid renewed Middle East tensions
Oil prices climbed as geopolitical developments in the Middle East and the Russia-Ukraine conflict remained in focus.
Brent crude futures rose to more than $106 a barrel, their highest level in about two weeks, following deadly strikes on Riyadh’s international airport over the weekend.
West Texas Intermediate futures advanced around 2% to more than $93 a barrel in trading.
President Donald Trump said Russia and Ukraine had agreed to halt attacks on each other’s energy facilities following a US diesel-supply deal with Moscow.
However, the details remained unclear, and Ukrainian President Volodymyr Zelenskyy said Russia had already violated the agreement.
Trump also said he was considering joining Saudi Arabia in its fight against the Iran-backed Houthis in Yemen, raising concerns about a potential escalation in regional tensions.
Higher energy prices have contributed to concerns that inflation could remain elevated, potentially limiting the Federal Reserve’s ability to lower interest rates.
The US Treasury market was closed on Monday for Columbus Day.
Bank earnings and inflation data in focus
The third-quarter earnings season gathers pace this week, with major banks including JPMorgan Chase, Wells Fargo, Goldman Sachs, Citigroup, Bank of America and Morgan Stanley scheduled to report results.
Analysts expect strong earnings growth from S&P 500 companies.
LSEG IBES data projects third-quarter earnings growth of 30.6%, while FactSet estimates growth of 29.6%.
Strength in technology and artificial intelligence-related spending has supported expectations for another robust reporting season.
Investors will also assess how companies are managing higher fuel costs, borrowing expenses and pricing pressures.
Corporate commentary on demand, profit margins and investment in artificial intelligence could help determine whether earnings growth can support further gains in equities.
September consumer price index data is due on Wednesday, followed by producer price index figures on Thursday.
Headline consumer inflation is expected to rise 3.7% annually, while core inflation is forecast to increase 2.5%. Retail sales data will provide another indication of consumer demand.
Markets were pricing in a 19% chance of a Federal Reserve rate increase this month, according to CME’s FedWatch tool.
Individual stock moves
Among individual stocks, IREN rose 2.95% after a report that Anthropic had entered into a multi-year cloud deal with the data-centre company.
Salesforce gained 4% after BofA Global Research upgraded its rating to Buy from Underperform.
IonQ fell 4% after announcing an all-stock agreement to acquire privately held cybersecurity firm Elisity in a transaction valued at up to $1.3 billion.
Micron Technology declined more than 4% as investors assessed growing competition from China’s CXMT, which reported progress on a new chip structure.
The major US indexes ended last week higher, supported by technology shares and optimism about earnings.
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