U.S. stock futures were pointing higher on Monday, with the Dow Jones, S&P 500 and Nasdaq 100 all in the green after a mixed close on Friday. The catalyst? A weekend de-escalation between the U.S. and Iran.

Over the weekend, the U.S. suspended its 13-night airstrike campaign against Iran to allow for diplomacy and assess munitions stocks. In response, a senior Iranian official confirmed Tehran would also halt retaliatory strikes as long as the U.S. pause continues. That's the kind of geopolitical relief that tends to get markets in a buying mood.

But the big story this week isn't just geopolitics. Investors are gearing up for a critical stretch as four 'Magnificent 7' heavyweights—Meta Platforms Inc. (META), Microsoft Corp. (MSFT), Amazon.com Inc. (AMZN), and Apple Inc. (AAPL)—report quarterly results. And then there's the Federal Open Market Committee's interest rate decision on Wednesday, presided over by Chair Kevin Warsh.

The 10-year Treasury bond was yielding 4.64%, while the two-year bond sat at 4.30%. According to the CME Group's FedWatch tool, markets are pricing a 68.5% likelihood that the Fed will leave rates unchanged at this month's meeting.

Here's how the major index futures were shaping up Monday morning:

The SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust ETF (QQQ), which track the S&P 500 and Nasdaq 100 respectively, were both higher in premarket. The SPY was up 0.94% at $745.85, while the QQQ advanced 1.57% to $695.

Stocks in Focus

Microchip Technology

• Microchip Technology Inc. (MCHP) was 2.24% higher in premarket after it announced it has signed an agreement to acquire Hailo, an AI chip startup. The deal gives Microchip a foothold in the edge AI space.

Advanced Micro Devices

• Advanced Micro Devices Inc. (AMD) was up 3.03%, continuing its positive momentum from last week following its Analyst Day. There, AMD announced large-scale partnerships with Anthropic and OpenAI, new data-center products, and said it expects the AI accelerator market to reach $1.4 trillion by 2030.

Safety Insurance Group

• Safety Insurance Group Inc. (SAFT) was 1.14% lower after the company announced that Mapfre will acquire it on Friday. The deal is a cash offer, and the stock is trading slightly below the acquisition price.

Celestica

• Celestica Inc. (CLS) was 2.53% higher as analysts expect it to post quarterly earnings of $2.30 per share on revenue of $4.39 billion. The electronics manufacturing services company is seen benefiting from strong demand.

Nucor

• Nucor Corp. (NUE) was up 1.37% as analysts expect it to post quarterly earnings of $4.38 per share on revenue of $10.14 billion. The steelmaker is riding high on infrastructure spending and tariffs.

Cues from Last Session

Friday's session was a mixed bag. Consumer staples, real estate, and materials stocks led gains, while information technology shares fell. The Dow rose over 200 points, but the Nasdaq was dragged down by chip stocks.

Insights from Analysts

Mohamed A. El-Erian, the well-known economist, sees a complex "two-speed economy" in the U.S. The service sector is showing resilience, but manufacturing continues to face headwinds. He emphasizes that the current landscape is defined by "crosscurrents currently affecting the global economy and markets, as well as the still-elusive search for endpoints on key issues."

Geopolitical frictions and supply chain disruptions are reigniting inflationary pressures, creating a "tug-of-war" between investors who want to brush aside risks and those remaining cautious. Heavy capital expenditure in the technology sector is driving up debt issuance, which pushes long-term yields higher.

On the Fed, El-Erian expects the central bank to keep interest rates steady to avoid "premature tightening, which could over-adjust the economy," while staying cautious of second-round inflation risks. He notes that determining a clear policy trajectory remains difficult, as "defining the ultimate 'landing zone' for policy will seem like a moving target, requiring open-mindedness and optionality."

Meanwhile, U.S. equity markets face ongoing pressure, particularly in tech, as investors scrutinize heavy AI capital expenditures for clear signs of ultimate profitability.

Upcoming Economic Data

Here's what investors will be watching this week:

• Monday: June's durable-goods orders data at 8:30 a.m. ET.
• Tuesday: June's advance economic indicators report, wholesale inventories, and retail inventories data at 8:30 a.m. ET. May's S&P CoreLogic Case-Shiller home price index at 9:00 a.m., and July's Conference Board consumer confidence data at 10:00 a.m. ET.
• Wednesday: The Fed's interest rate decision at 2:00 p.m. ET.
• Thursday: Q2 advance estimate GDP, weekly jobless claims for the week ending July 25, June's personal income, consumer spending, headline PCE price index, and core PCE price index data, all at 8:30 a.m. ET.
• Friday: Q2 employment cost index data at 8:30 a.m. ET. July's Chicago PMI at 9:45 a.m., and July's final University of Michigan consumer sentiment data at 10:00 a.m. ET.

Commodities, Crypto, and Global Equity Markets

Crude oil WTI futures were trading lower in the early New York session, down 6.73% to around $83.30 per barrel. The drop likely reflects the de-escalation between the U.S. and Iran, which reduces the risk of supply disruptions.

Gold spot prices rose 0.98% to hover around $4,092.76 per ounce. The U.S. Dollar Index was 0.21% lower at 101.2590.

Bitcoin (CRYPTO: BTC) was trading 1.17% higher at $65,143.39 per coin over the last 24 hours.

Asian markets closed higher on Monday, with India's Nifty 50, Australia's ASX 200, South Korea's Kospi, Hong Kong's Hang Seng, China's CSI 300, and Japan's Nikkei 225 all rising. European markets were also higher in early trade.