Stock Market Update

Equity futures point to a mostly higher open to start the week, with some enthusiasm coming from a slide in oil prices after President Trump called off planned strikes against Iran. NBC News reports that President Trump said new talks will begin with Iran today, and crude oil is currently down $5.28 (-6.2%) to $79.39 per barrel.

Stocks are coming off a mostly higher finish to a volatile week following strong earnings from Microsoft (MSFT 475.00, +10.28, +2.2%) and Amazon (AMZN 276.83, +5.25, +1.9%), which also helped reignite some enthusiasm around the AI-buildout cycle.

This week will also see a sizable chunk of S&P 500 companies report earnings, including several large chipmaker names along with SpaceX (SPCX 106.30, -2.07, -1.9%).

On the data front, investors will receive the final S&P Global U.S. Manufacturing PMI for July at 9:45 a.m. ET, followed by June Construction Spending and the July ISM Manufacturing Index at 10:00 a.m.

In corporate news:

• Alibaba (BABA 127.37, +5.12, +4.2%) introduced a new Qwen3.8-Max AI model, according to Bloomberg.
• AstraZeneca (AZN 162.30, -7.34, -4.3%) is in discussions to combine with Bristol Myers Squibb (BMY 68.50, +3.19, +4.9%), according to Financial Times.
• Marriott (MAR 359.85, -12.98, -3.5%) beat EPS expectations by $0.11, missed revenue expectations, and guided Q3 EPS below consensus, with FY26 EPS above consensus.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region had a mixed showing on Monday with South Korea's Kospi (-5.1%) giving back some of its big gains from Friday. Japan's Nikkei: -0.9%, Hong Kong's Hang Seng: +0.5%, China's Shanghai Composite: -0.6%, India's Sensex: +0.7%, South Korea's Kospi: -5.1%, Australia's ASX All Ordinaries: +0.5%.

In news:

• The U.S. Treasury confirmed that it took part in a joint intervention in the foreign exchange market with Japan's Ministry of Finance and Treasury Secretary Bessent called for increasing the size of the facility that was used to conduct the operation.
• Final July Manufacturing PMI readings from the region showed accelerating growth in most economies.
• Chinese press reported that convertible bond sales in China could exceed CNY100 bln this year.

In economic data:

• China's July RatingDog Manufacturing PMI 50.9 (expected 51.9; last 51.7)
• Japan's July Manufacturing PMI 54.5 (expected 54.7; last 54.8)
• South Korea's July trade surplus $30.23 bln (expected surplus of $29.59 bln; last surplus of $36.09 bln). July Imports 26.5% yr/yr (expected 26.6%; last 30.0%) and Exports 62.8% yr/yr (expected 59.0%; last 70.7%). July Manufacturing PMI 53.1 (last 52.1)
• Australia's July Manufacturing PMI 52.0 (expected 51.7; last 51.5). July MI Inflation Gauge 1.0% m/m (last -0.4%) and July ANZ Job Advertisements 2.0% m/m (last -0.2%)
• New Zealand's June Building Consents -3.6% m/m (last -4.9%)
• India's July Manufacturing PMI 53.5 (expected 53.9; last 54.2)

Major European indices trade firmly in the green while the U.K.'s FTSE (+0.2%) struggles to keep pace as AstraZeneca (AZN) weighs amid reports that the company held merger talks with Bristol-Myers Squibb (BMY). STOXX Europe 600: +0.4%, Germany's DAX: +1.5%, U.K.'s FTSE 100: +0.2%, France's CAC 40: +1.3%, Italy's FTSE MIB: +0.9%, Spain's IBEX 35: +0.8%.

In news:

• Falling energy prices and indications of U.S.-Iran deescalation have contributed to the overall strength in the region.
• Final July Manufacturing PMI readings from the region showed some deceleration in growth compared to flash estimates, though the eurozone's reading (51.9) remained above 50.

In economic data:

• Eurozone's July Manufacturing PMI 51.9 (expected 52.0; last 52.0)
• Germany's June Retail Sales -1.1% m/m (expected -0.4%; last 1.2%); -0.2% yr/yr (last -2.8%). July Manufacturing PMI 52.2, as expected (last 52.2)
• U.K.'s July Manufacturing PMI 51.9 (expected 52.8; last 52.8)
• France's July Manufacturing PMI 49.8 (expected 50.0; last 50.0)
• Italy's Manufacturing PMI 51.3 (expected 52.5; last 52.2)
• Swiss July CPI -0.1% m/m, as expected (last 0.0%); 0.4% yr/yr (last 0.5%). July Manufacturing PMI 53.2 (expected 54.5; last 54.3)