U.S. equity futures pointed to a cautious start to the week on Monday, with major indices poised for modest declines as investors weighed geopolitical risks and upcoming corporate earnings.
The Dow Jones Industrial Average was indicated down 0.19% at 53,234 points, while the S&P 500 futures fell 0.32% and the Nasdaq 100 futures dropped 0.80%. In Europe, the Swiss Market Index (SMI) was down 0.26% at 14,423 points, nearing intraday lows.
Technology shares led the declines in the U.S., with Intel down 1.9% and Advanced Micro Devices (AMD) down 1.7% in pre-market trading. The chip sector’s pullback followed a strong run in the prior week, as investors awaited Nvidia’s second-quarter results due after the close on Wednesday. Analysts noted that the market’s focus would be on whether Nvidia could surpass elevated expectations, rather than simply meeting growth targets.
Oil prices retreated from recent highs as geopolitical tensions in the Middle East eased slightly. Brent crude, the global benchmark, fell 1.03% to $93.22 per barrel for October delivery, while U.S. West Texas Intermediate (WTI) declined 1.85% to $85.53 per barrel. The declines followed a nearly 20% surge in Brent prices over the prior three weeks, driven by stalled U.S.-Iran negotiations and concerns over supply disruptions through the Strait of Hormuz.
In Switzerland, the SMI’s decline was led by losses in Roche, which fell 1.46%, and Novartis, down 0.3%. The declines offset gains in luxury goods giant Richemont, which rose 1.67%, and Amrize, up 1.3%, as well as support for Nestlé, which added 0.5%. Construction-linked stocks such as Holcim, Geberit and Sika also advanced, with Geberit receiving a price target increase from Citigroup and Sika retaining a buy rating from UBS.
ABB shares fell 1.35% to 79.12 Swiss francs, erasing earlier gains and capping a mixed session for Swiss industrials. The broader Swiss Performance Index (SPI) slipped 0.2% to 20,276 points.
Market sentiment remained fragile ahead of key events later in the week, including a U.S. Treasury briefing on Monday evening detailing new sanctions against Iran, and Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole symposium on Friday. Analysts suggested Warsh’s remarks could offer clues on the central bank’s policy path amid elevated oil prices and rising bond yields.
The geopolitical backdrop continued to dominate trading, with Iran warning of severe consequences should the U.S. impose what it termed the “harshest sanctions in history.” Speculation centered on potential secondary sanctions targeting countries maintaining economic ties with Iran, raising questions about U.S. willingness to escalate trade tensions with China.
Among individual movers, H.B. Fuller fell 0.8% after its board rejected an offer from Ancora for its Building Adhesives division. Kühne+Nagel declined 1.5% following the announcement of the death of majority owner Klaus-Michael Kühne. Vetropack surged 2.3% after posting strong half-year results, while DocMorris gained 2.1% following a Deutsche Bank upgrade and price target increase.
