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Update: Oil Price Decline Lifts US Equity Futures Pre-Bell

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(Updates with economic data, recent oil price movement, world markets' overview and corporate stock movements.)

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

Dow Jones Industrial Average futures were 0.8% higher, S&P 500 futures were up 0.7%, and Nasdaq futures were 1.1% 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 2.7% at $101.03 per barrel and US West Texas Intermediate crude 2.8% lower at $93.38 per barrel.

The Chicago Fed national activity index for August came in at negative 0.04, compared with 0.08 previously and meeting expectations in a survey compiled by Bloomberg.

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

In other world markets, Hong Kong's Hang Seng ended 1.2% higher, and China's Shanghai Composite finished 1% higher. Japan's Nikkei was closed for a public holiday. Meanwhile, the UK's FTSE 100 was up 1%, and Germany's DAX index was 1.2% higher in Europe's early afternoon session.

In equities, Taiwan Semiconductor Manufacturing (TSM) shares rose 1.5% after a Reuters report citing the city's deputy mayor, Lo Ta-sheng, that the company will build two buildings at the newly launched Baipu Industrial Park in Kaohsiung, Taiwan.

Lumentum (LITE), Qualcomm Technologies (QCOM) and Corning (GLW) stocks were higher after Lumentum said that the companies will showcase a high-density optical die-to-die interconnect for AI scale-up systems at ECOC 2026 in Malaga, Spain. Lumentum shares were up 2.3%, Qualcomm Technologies stock was up 1.3%, and Corning shares rose 4%.

On the losing side, Novo Nordisk (NVO) stock was down 4.3% after a Financial Times report that the company is facing shareholder calls to develop new medicines and pursue acquisitions so that it could lower its dependence on its popular weight-loss treatments.

What else is happening in Asia Markets?

Asia Markets

Tadawul Equities Start Week Lower; Saudi's Business Operating Revenue Index Rises in July

The Tadawul All Share Index closed Sunday 0.26% in the red as investors keep their eyes on Saudi Arabia's latest geopolitical updates and economic data.The Houthi group struck multiple locations in Saudi Arabia over the weekend. The group said it attacked "sensitive" sites, such as the Saudi Arabian Oil Co. (SASE:2222), d/b/a Saudi Aramco's, Yanbu-based facility. Aramco shares closed 1.33% higher.Also dampening sentiment is the continued conflict between Ukraine and Russia, with Ukraine launching drone attacks on Moscow, which caused casualties and infrastructure damage.Back at home, and according to preliminary data from the General Authority for Statistics, the kingdom's operating revenues index increased 4.9% annually in July."On a monthly basis, the Operating Revenues Index increased by 1.2%, supported by increases of 0.8% in manufacturing activities, 6.4% in mining and quarrying activities, 0.1% in construction activities, and increases of 3.7% and 0.6% in information and communication activities and accommodation and food service activities, respectively," the report said.Meanwhile, the employee compensation index climbed 7.4% year over year, while the issued building permits rose 4.4% annually to 5,828 from 5,582.On the corporate front, Public Investment Fund-owned Roshn Group entered into a preliminary deal with Talaat Moustafa Group's Saudi unit to potentially form a joint company for a mixed-use project in Riyadh.

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Asia Markets

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

(Updates with index/price moves, macroeconomic data, and geopolitical news from the first paragraph.)US equity indexes closed mixed on Friday as government bond yields rebounded, with the 10-year yield hovering near its highest level in almost two decades.The Nasdaq Composite rose 0.4% to 26,522.55, the S&P 500 climbed 0.2% to 7,650.50, and the Dow Jones Industrial Average retreated 0.2% to 51,682.64. Materials, utilities and real estate led decliners at the close. Technology led the gainers."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 a 25 basis-point increase announced on Wednesday, the first policy tightening since 2023. "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 two 25 basis-point rate increases 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 5.3 basis points to 5%, trading near its strongest level since 2007. The two-year yield climbed 6.2 basis points to 4.75%, a multi-month high.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.The United Kingdom Maritime Trade Operations said an unknown projectile hit a tanker in the Strait of Hormuz, Al Jazeera, a Middle Eastern broadcaster, reported. Earlier, Iran's Islamic Revolutionary Guard Corps said it struck a Togo-flagged tanker as it attempted an "illegal passage" through the strait.The front-month US West Texas Intermediate crude oil contract slumped 2.5% to $99.39 per barrel, while the global benchmark North Sea Brent slipped 1.7% to $103.06 per barrel.In economic news, US industrial production unexpectedly held steady in August as manufacturing output fell after rising for seven straight months, Federal Reserve data showed. Industrial output was nearly flat sequentially last month, following a 0.2% gain in July, according to the Fed. The consensus was 0.3% for August in a Bloomberg-compiled survey.The Conference Board's measure of leading indicators slipped 0.1% in August, compared with expectations for a 0.1% gain in a Bloomberg-compiled poll and a 0.2% advance in July. The reading is the first monthly decline since March.In company news, Nucor (NUE) shares slumped 6%, one of the S&P 500's worst performers, after the company said late Thursday it expects Q3 earnings of $5.55 to $5.65 per diluted share, below analysts' consensus.

Dow JonesNasdaq CompositeS&P 500$NUE
Asia Markets

US Equity Indexes Mixed This Week as Benchmark Treasury Yield Trades Near 19-Year High Following Fed Rate Increase

US equity indexes closed mixed this week after the Federal Reserve reaffirmed its commitment to controlling inflation and tightened policy for the first time since 2023. Crude oil prices remained elevated above $100.* The S&P 500 closed at 7,650.14 on Friday, versus 7,656.98 a week ago. The Nasdaq Composite stood at about 26,522.55, compared with 26,333.04 a week earlier. The Dow Jones Industrial Average ended at 51,681.93, versus 52,573.29 at the end of last week.* Communication, healthcare, and technology were among the top gainers, while utilities, financials, and real estate were among the steepest decliners.* The US Federal Reserve raised its benchmark lending rate by 25 basis points in a unanimous vote on Wednesday to combat sticky inflation, while signaling another hike later this year. The Federal Open Market Committee raised the federal funds rate to 3.75% to 4%, the first time it has tightened monetary policy since July 2023.* "After more than five years of significantly elevated inflation, a period which included a rate-cutting cycle, the new Warsh Fed appears to be taking a step in the right direction to combat dangerously high price pressures," Lindsey Piegza, Stifel chief economist, said in a note.* The 10-year yield rose 5.1 basis points to 5%, trading close to its highest since 2007.* The United Kingdom Maritime Trade Operations said an unknown projectile hit a tanker in the Strait of Hormuz, Al Jazeera, a Middle Eastern broadcaster, reported. Earlier, Iran's Islamic Revolutionary Guard Corps said it struck a Togo-flagged tanker as it attempted an "illegal passage" through the strait.* The front-month US West Texas Intermediate crude oil contract fell 1.2% to $100.67 per barrel, while the global benchmark North Sea Brent declined 1.2% to $103.57 per barrel late Friday.

Dow JonesNasdaq CompositeS&P 500