Most Important News

1. Trump Cancels Iran Strike, Nuclear Talks Resume Monday;
2. Wall Street Sees Worst Selloff Likely Over, But Bottom-Fishing Still Risky;
3. Google's Off-Balance-Sheet Guarantees Jump Sixfold to $43.8B;
4. AstraZeneca in Talks to Merge with Bristol Myers in Potential $400B Deal;

US stock futures climbed early Monday, the first trading session of the new month, after President Donald Trump scrapped plans for military action against Iran, a move that drove oil prices down.

As of 03:04 PM Riyadh time, futures linked to the Dow Jones Industrial Average jumped 615 points, or roughly 1.17%. S&P 500 futures gained 0.59%, while Nasdaq-100 futures edged higher by 0.22%.

On Sunday, Trump announced he had called off a planned strike on Iran, noting that discussions between the two nations would restart on Monday. According to US media reports on Friday, the president had been preparing for a fresh round of attacks as prospects for a negotiated end to the war faded and energy costs climbed.

In reaction, crude prices dropped sharply. Brent oil fell about 6% to $82.95 a barrel. West Texas Intermediate futures declined nearly 7% to $78.93 a barrel.

Treasury yields also retreated as inflation concerns eased somewhat. The benchmark 10-year Treasury yield fell 6 basis points to 4.68%.

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As of 03:39 PM Riyadh Time, top pre-market movements are as follows:

Trump Cancels Iran Strike, Nuclear Talks Resume Monday

US President Trump called off a planned strike on Iran, with nuclear talks resuming Monday. Iran's foreign ministry spokesman Baghaei said no direct US talks exist, and Oman-mediated discussions focus on safe passage through the Strait of Hormuz. Pakistan and Qatar are also mediating. Oil sank over 6%, equity futures rose, energy shares fell, and gold slipped as geopolitical risk eased.

US, Japan Confirm Joint Yen Intervention, Signaling More Action Possible

The US Treasury and Japan's Ministry of Finance confirmed coordinated yen-buying Friday, a rare joint move in decades. The yen surged Monday amid intervention alertness. MUFG said such action clears short positions but lasting strength needs higher real rates. Japanese exporters and automakers led a selloff; strategists noted most earnings assume USD/JPY near 151.49, leaving a JPY5 buffer.

Wall Street Sees Worst Selloff Likely Over, But Bottom-Fishing Still Risky

After a month of turbulence, Jpmorgan Chase(JPM.US) data shows tech deleveraging is nearing its end, with leveraged ETFs, hedge fund exposure and CTA positions retreating from extremes. However, revived inflation worries, uncertain rate paths and AI-return doubts persist. Goldman Sachs Group, Inc.(GS.US)'s top traders warned risks aren't fully cleared, cautioning August lacks upside fuel amid seasonal outflows and weak institutional appetite.

NY Fed's Williams Says Rates Well-Positioned, Inflation to Ease in Second Half

New York Fed President John Williams said in an interview he personally forecasts inflation declining in the second half of this year and further next year. He added that current monetary policy is well-positioned to support that path. Williams noted the Fed may need to act if inflation fails to move toward the 2% target as expected.

SpaceX Play: Jeffries Bucks Governance Fear

Jefferies says investors are avoiding SpaceX(SPCX.US) over governance miss; its growth; upcoming earnings could ease worries. Read in detail>>

Google Halts New AI Image Generator

Alphabet Inc. Class C(GOOG.US) paused its AI image generator in Gemini after fake, misleading images fueled misinformation fears, missing a deadline to respond to lawmakers' concerns. Read in detail>>

IBM Bets On 2028 Quantum Boom

Arvind Krishna says IBM Corp(IBM.US) quantum computing becomes meaningful business by 2028, as firm's confidence grows. Read in detail>>

Alibaba Stock Climbs Monday

Alibaba Group Holding Ltd. Sponsored ADR(BABA.US) shares rose Monday on investor optimism despite ongoing regulatory scrutiny, trading up 3% to $82.55. Read in detail>>

Google's Off-Balance-Sheet Guarantees Jump Sixfold to $43.8B

Alphabet Inc. Class A(GOOGL.US) disclosed last week that potential financial guarantees covering data-center tenant defaults have climbed to $43.8 billion, nearly six times the $6.5 billion recorded at the end of September. Through such backstop pledges, the company effectively acts as an implicit guarantor for developers, letting them secure cheaper debt and accelerate capacity buildout.

Lumentum Warns Optical Interconnects Emerging as New AI Bottleneck

Indium phosphide is becoming the weakest link in AI infrastructure expansion, facing sharper shortages than memory as data-center optical-interconnect demand surges. Lumentum Holdings, Inc.(LITE.US) CEO Michael Hurlston told the RAISE summit in Paris this month that supply gaps exceed 30% and widened last quarter. He warned even combined output couldn't meet Nvidia and other clients' needs, making the shortfall worse than memory's.

Palantir Earnings Could Ignite Second Wave for AI Application Software

Palantir(PLTR.US), a leader in AI-powered data analytics, reports quarterly results and guidance Monday after the US close. Its shares have surged over 130% in 2025, yet analysts see further upside; $BAC set a Street-high 12-month target of $255. A strong beat with sharply raised guidance could further fuel the outperforming AI application-software sector.

AstraZeneca in Talks to Merge with Bristol Myers in Potential $400B Deal

AstraZeneca PLC(AZN.US) has explored acquiring Bristol-Myers Squibb Company(BMY.US), sources said, a tie-up that would create one of the world's largest drugmakers. As of Friday's close, their US market values stood at $263 billion and $133.4 billion. Mizuho analysts said investors may resist, noting AstraZeneca's projected 10%-plus five-year EPS growth versus Bristol Myers' likely decline in the absence of major synergies.