Dow futures are experiencing an uptick, reflecting a sentiment that suggests resilience in the face of renewed conflict between Israel and Iran, alongside persistent economic uncertainty. Oil prices have risen once more in the wake of a series of weekend attacks between the two nations, with the ongoing violence expected to be a significant topic of discussion at this week’s Group of Seven summit in Canada. In other developments, activist investor Barington Capital Group is said to be preparing to initiate a campaign aimed at restructuring the board of directors at the intimate apparel company Victoria’s Secret.
U.S. stock futures indicated an upward trajectory on Monday, as investors evaluated the recent unrest in the Middle East while anticipating a forthcoming decision on interest rates from the Federal Reserve later in the week. The Dow futures contract registered an increase of 181 points, equivalent to 0.4%, while S&P 500 futures saw a rise of 29 points, or 0.5%. Additionally, Nasdaq 100 futures experienced an uptick of 113 points, also reflecting a 0.5% gain. The primary indices on Wall Street declined on Friday in response to a series of airstrikes between Israel and Iran, which heightened tensions in the Middle East and negatively impacted market sentiment.
Defense stocks experienced a notable increase following the attacks. Oil prices experienced a significant increase, which supported energy stocks while simultaneously exerting pressure on airline companies that are confronted with the likelihood of rising fuel expenses. Nonetheless, the relatively benign inflation readings and stable weekly jobless claims figures alleviated some investor concerns regarding the effects of sweeping U.S. tariffs on economic activity. The attention is currently directed towards the Federal Reserve’s interest rate decision scheduled for Wednesday, with expectations that the central bank will maintain the current interest rates and adopt a cautious stance regarding any future adjustments to borrowing costs.
Oil prices resumed their upward trajectory on Monday, as markets evaluated the limited indications of de-escalation in the conflict between Israel and Iran. Brent crude futures experienced an increase of 0.4%, reaching $74.53 per barrel, whereas U.S. West Texas Intermediate crude futures saw a rise of 0.5%, settling at $71.64 a barrel. Both contracts experienced an increase of more than $4 earlier in the session.
Over the weekend, Israel and Iran engaged in renewed hostilities that resulted in civilian casualties, raising concerns about the potential for a wider regional conflict in the Middle East. Tehran has communicated to mediators Oman and Qatar its refusal to participate in ceasefire discussions led by the U.S. as long as Israel continues its military operations, according to a report from Reuters, which cites an official familiar with the situation. Israel has issued a warning for Iranians residing in proximity to nuclear facilities to evacuate. The nation focused its efforts on these sites and additional ballistic missile initiatives in a series of assaults that commenced early on Friday. On Monday, Israel conducted attacks on surface-to-surface missile sites.
The ongoing conflict between Israel and Iran is poised to be a significant topic of discussion at this week’s gathering of leaders from the Group of Seven nations in Canada. Reports indicate that representatives are preparing to release a joint statement regarding the situation, calling on both parties to deescalate. German Chancellor Friedrich Merz stated his intention for the summit to conclude that, although Iran must not advance its nuclear weapons capabilities and Israel’s right to self-defense must be upheld, there remains an opportunity for diplomatic engagement.
Officials are expected to proceed with caution to maintain a favorable relationship with U.S. President Donald Trump, especially as Washington engages in ongoing negotiations with various nations regarding Trump’s stringent “reciprocal” tariffs. Canadian Prime Minister Mark Carney has emphasized that the summit will advocate for peace and security, while also indicating that Ottawa may retaliate against the U.S. should the White House fail to remove its tariffs on steel and aluminum.
Barington Capital Group, an activist investor, is set to initiate efforts aimed at restructuring the board of directors at Victoria’s Secret and putting a stop to its shareholder rights plan. Citing a person familiar with the situation, the news agency reported that New York-based Barington views Victoria’s Secret as an underperformer relative to its peers and has been losing value since its spin-off from former parent firm L Brands in 2021. Barington, which currently holds a stake exceeding 1% in the lingerie retailer, is reportedly seeking to overhaul the majority or entirety of Victoria’s Secret’s board and eliminate a so-called “poison pill” strategy designed to safeguard the company against hostile takeovers. Victoria’s Secret has been contending with lackluster recent demand — a trend that has resulted in its share declining by approximately 55% thus far this year.
Kering shares surged more than 7% on Monday following reports that Luca de Meo, the former CEO of Renault, could be named the next chief executive of the French luxury group. Various sources, such as Le Figaro, the Financial Times, and Bloomberg, indicated over the weekend that de Meo is poised to assume the CEO position, while Kering Chairman François-Henri Pinault is anticipated to maintain his role as chairman, thereby delineating the two roles. Renault has confirmed that de Meo has resigned to explore opportunities beyond the organization. Analysts at RBC Capital Markets observed that the market reacted favorably to the reports, interpreting the potential appointment as an indication of Kering’s commitment to strengthening executive leadership and tackling persistent governance issues.