U.S. stock index futures made gains on Monday, aiming to recover from the losses of the previous week. This comes as investors brace for the Federal Reserve’s upcoming rate decision amidst escalating tensions between Israel and Iran.

Futures Rebound Ahead of Fed Meeting

As of 05:25 ET (09:25 GMT):

• Dow Jones Futures: +145 points (+0.4%)

• S&P 500 Futures: +27 points (+0.5%)

• Nasdaq 100 Futures: +113 points (+0.5%)

Investors are calibrating their positions ahead of the FOMC rate announcement scheduled for Wednesday, which is likely to influence equity markets in the latter half of 2025.

Active Futures Movers

To gain insight into which contracts and sectors are actively trading in the premarket session, investors can utilize real-time data services.

Geopolitical Risk: Israel-Iran Strikes

The weekend saw renewed missile exchanges between Israel and Iran, intensifying the instability in the Middle East. Significant developments include:

• Iran’s Position: Tehran has rejected U.S.-mediated ceasefire discussions as Israeli attacks continue, as reported by Reuters.

• Israel’s Alert: Civilians near Iran’s nuclear facilities have been advised to evacuate in response to ongoing military activities.

• Current Shipping Safety: Investors remain cautiously optimistic that critical shipping routes in the Strait of Hormuz will remain open, thus protecting global oil supplies.

The recent skirmishes impacted trading on Friday, resulting in losses for major indexes: S&P 500 (-1.1%), Nasdaq Composite (-1.3%), and Dow (-1.8%). However, broader market panic remains subdued as traders monitor the situation closely.

G7 Summit Focus: De-Escalation and Trade Tensions

The escalating Israel-Iran situation stands at the forefront of discussions at the G7 summit taking place in Canada, where leaders aim to:

• Issue a Collective Statement: Urge both parties to avoid further military escalation.

• Balance Diplomacy and Defense: German Chancellor Merz advocates for initiatives to curb Iran’s nuclear pursuits while ensuring Israel’s security.

• Address Tariff Conflicts: Canadian PM Carney hinted at possible retaliatory actions against U.S. tariffs on steel and aluminum should adjustments not be made.

Conclusion: With the Federal Reserve’s rate decision and the G7 summit intersecting this week, market participants should anticipate fluctuations influenced by both monetary policy and geopolitical dynamics. Staying informed about economic trends and major futures activity will help investors navigate this period.