U.S. stock and bond futures rose Monday morning as traders moved past weekend attacks on Saudi Arabia. Crude oil prices declined, easing immediate concerns over supply disruptions.
S&P 500 futures gained 0.6 percent, while Nasdaq futures and Dow Jones futures climbed 0.6 percent and 0.8 percent respectively, signaling a positive open for U.S. equities.
The advance in bond futures reflects the market's assessment that sustained supply shocks are unlikely. Longer-dated Treasury futures registered gains as investors recalibrated their outlook around lower energy costs rather than geopolitical escalation.
Treasury yields moved lower across the curve. The decline in crude prices typically reduces near-term inflation expectations, supporting bond valuations and widening the window for the Federal Reserve to hold rates steady or potentially cut. This dynamic has compressed spreads between riskier assets and safe-haven Treasuries as duration risk has retreated.
