Dow Jones and Nasdaq tipped for strong start, oil tumbles as Iran tensions ease

• West Texas Intermediate crude plunged 6.3% to $83.66 per barrel, down roughly 10% since Thursday, following an informal pause in US-Iranian military actions
• Markets anticipate the Fed's decision Wednesday with a 34% chance priced in for a quarter-point rate increase
• Major tech earnings this week include Microsoft and Meta on Wednesday, Apple and Amazon on Thursday, plus reports from Visa, Boeing, Coca-Cola, and energy giants ExxonMobil and Chevron

Market Summary: Dow Jones and Nasdaq Tipped for Strong Start as Iran Tensions Ease

Market Opening Forecast:

US stock futures pointed to a strong Monday opening on July 27, 2026, with Dow Jones futures up 568 points (+1.1%), S&P 500 futures gaining 0.9%, and Nasdaq futures jumping 1.5%.

Key Driver - Geopolitical Developments:

Oil prices tumbled sharply as US-Iran military tensions paused. West Texas Intermediate crude plunged 6.3% to $83.66 per barrel, marking a 10% decline since the previous Thursday. While neither Washington nor Tehran officially confirmed a ceasefire, Iran indicated it would refrain from further military action as long as the US reciprocates. Iran's foreign ministry confirmed discussions with Oman regarding shipping arrangements through the Strait of Hormuz, though direct US-Iran negotiations were denied. Houthi attacks near the Bab al-Mandeb Strait continue threatening shipping routes.

Previous Week Performance:

Markets ended a volatile week on mixed notes. The Dow and S&P finished slightly higher on Friday but posted weekly losses. The Nasdaq declined approximately 2% week-over-week.

Critical Week Ahead:

Barclays dubbed this "Super Bowl" week for markets, featuring:

• Federal Reserve Meeting (Wednesday): Markets pricing in 34% probability of a quarter-point rate increase
• Major Earnings Reports:
• Tuesday: Visa, Coca-Cola, Boeing, S&P Global, PayPal
• Wednesday: Microsoft, Meta, Qualcomm, Starbucks
• Thursday: Apple, Amazon, Mastercard, Coinbase
• Friday: ExxonMobil, Chevron, AbbVie, Moderna

Market Implications:

The combination of easing geopolitical risks and pivotal Fed policy decisions alongside tech megacap earnings will likely drive significant market volatility and direction-setting for coming months.