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Oil Price Decline Lifts US Equity Futures Pre-Bell

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US equity futures were edging higher pre-bell Monday as oil prices declined to start the week.

Dow Jones Industrial Average futures were 0.9% higher, S&P 500 futures were up 0.7%, and Nasdaq futures were 1% higher.

The US, Denmark, and Greenland have entered into an agreement for the US to develop a "large" military presence in Greenland, President Donald Trump said in a post on Truth Social. The agreement gives the US "permanent control" over security and other needs in Greenland and prevents US adversaries from establishing military bases, maintaining a military presence, or making sensitive investments without US approval, Trump said.

Chinese President Xi Jinping will pay a state visit to the US from Sept. 23 to 25 and meet with Trump to "have an in-depth exchange of views on major issues concerning China-US relations and world peace and development," China's Foreign Ministry said.

Scheduled to report financial results this week are AutoZone (AZO), Costco Wholesale (COST), and Cintas (CTAS).

Oil prices were lower, with front-month global benchmark North Sea Brent crude down 2.8% at $100.99 per barrel and US West Texas Intermediate crude 2.8% lower at $93.38 per barrel.

The Chicago Fed national activity index for August, expected at 8:30 am ET, is seen coming in at negative 0.04, compared with negative 0.08 previously, according to estimates compiled by Bloomberg.

Federal Reserve Chicago President Austan Goolsbee is slated to speak on Monday.

What else is happening in Japan?

Japan

US Equity Markets Mixed After Government Bond Yields Rise, Crude Oil Prices Fall

US equity indexes were mixed Friday as government bond yields rebounded, with the 10-year hovering near its highest level in almost two decades, while crude oil prices fell.* US equity funds recorded outflows for a fourth consecutive week as rising crude oil prices heightened inflation concerns and expectations of a Fed rate increase added to investor caution ahead of its policy decision, Reuters reported.* "We now expect two more hikes from the [Federal Reserve in the next 12 months], and our commodity analysts see energy markets facing a convergence of supply chain disruptions," Morgan Stanley said in a note.* October West Texas Intermediate crude oil fell $2.26 to settle at $99.65 per barrel, while November Brent crude, the global benchmark, was last seen down $1.64 at $103.18.* Nucor (NUE) shares were down 6.3%, the worst performer on the S&P 500, after the company said late Thursday it expects Q3 earnings of $5.55 to $5.65 per diluted share, below analysts' estimates.

Dow JonesNasdaq CompositeS&P 500$NUE
Japan

Update: US Equity Indexes Mixed as Benchmark Treasury Yield Rises 5%

(Updates with index/price moves and geopolitical news from the first paragraph.)US equity indexes traded mixed in the final leg of trading while government bond yields rebounded, with the 10-year hovering near its highest level in almost two decades.The Nasdaq Composite rose 0.2% to 26,460.5, and the S&P 500 edged up less than 0.1% to 7,642.1 ahead of Friday's close. The Dow Jones Industrial Average slipped 0.2% to 51,688.5. Materials and utilities led decliners."We now expect two more hikes from the [Federal Reserve], and our commodity analysts see energy markets facing a convergence of supply chain disruptions," Morgan Stanley said in a note after Wednesday's 25-basis-point rate increase. "A higher expected path for oil prices means disinflation will be slower, and more restrictive policy also weighs on growth in 2027."Morgan Stanley expects rate increases of the same magnitude in December and March, to a target range of 4.25 to 4.50%. "They hold there through the end of next year."US Treasury yields rose after midday. The 10-year yield jumped 5.5 basis points to 5%, trading near its strongest level since 2007. The two-year yield climbed 5.5 basis points to 4.75%, a multi-month high.The front-month US West Texas Intermediate crude oil contract fell 2.3% to $99.61 per barrel, while the global benchmark North Sea Brent declined 1.6% to $103.09 per barrel.

Dow JonesNasdaq CompositeS&P 500
Japan

Update: US Equity Indexes Fall as Benchmark Treasury Yield Jumps Back Above 5%

(Updates with index/price moves and company/geopolitical news from the first paragraph.)US equity indexes fell as government bond yields rebounded, with the 10-year hovering around its highest in almost two decades.The Nasdaq Composite slipped 0.1% to 26,383.5, the S&P 500 declined 0.2% to 7,619.6, and the Dow Jones Industrial Average retreated 0.4% to 51,563.9 after midday Friday.US Treasury yields rose after midday. The 10-year yield jumped 5.1 basis points to 5%, trading near its strongest level since 2007. The two-year yield climbed 5.1 basis points to 4.74%, a multi-month high.The front-month US West Texas Intermediate crude oil contract rose 0.2% to $101.70 per barrel, while the global benchmark North Sea Brent slipped 0.5% to $104.28 per barrel.In company news, Nucor (NUE) shares slumped 6%, one of the worst performers on the S&P 500, after the company said late Thursday it expects Q3 earnings of $5.55 to $5.65 per diluted share, falling short of analysts' consensus.

Dow JonesNasdaq CompositeS&P 500$NUE