U.S. Stocks May Regain Ground Amid Pullback By Crude Oil Prices

(RTTNews) - The major U.S. index futures are currently pointing to a sharply higher open on Monday, with stocks likely to regain ground following the slump seen last week.

Early buying interest may be generated in reaction to a sharp pullback by the price of crude oil, which is plunging by 3.2 percent after soaring by 8.6 percent last week.

The pullback by the price of crude oil comes after President Donald Trump called on other countries to help secure the Strait of Hormuz.

"I'm demanding that these countries come in and protect their own territory, because it is their territory. It's the place from which they get their energy," Trump told reporters aboard Air Force One on Sunday. "And they should come and they should help us protect it."

"Why are we maintaining the Hormuz Strait when it's really there for China and many other countries?" he asked. "Why aren't they doing it?"

Bargain hunting may also contribute to initial strength on Wall Street after the major averages dropped their lowest closing levels in over three months last Friday.

Following the sell-off seen during Thursday's session, stocks rebounded in early trading on Friday but showed a notable move back to the downside as the day progressed. The major averages pulled back well off their early highs and into negative territory.

The major averages added to the steep losses posted in the previous session, falling to new three-month closing lows. The Nasdaq slid 206.62 points or 0.9 percent to 22,105.36, the S&P 500 fell 10.43 points or 0.6 percent to 6,632.19 and the Dow dipped 119.38 points or 0.3 percent to 46,558.47.

For the week, the Dow plunged by 2.0 percent, the S&P 500 tumbled by 1.6 percent and the Nasdaq slumped by 1.3 percent.

The pullback seen over the course of the session came as trading continued to be largely driven by reaction to crude oil prices.

Stocks initially benefitted from a pullback by the price of crude oil, with crude for April delivery plunging by as much as 3.9 percent after skyrocketing over the course of the two previous sessions.

However, crude oil prices recovered from the early pullback and moved sharply higher over the course of the session, leading to the downturn by stocks.

The volatility shown by oil came as President Donald Trump has ramped up his rhetoric against Iran, calling the regime "deranged scumbags" that he has the "great honor" to kill.

On the U.S. economic front, a typically closely watched Commerce Department report showed the annual rate of consumer price growth unexpectedly slowed in January.

The Commerce Department said the annual rate of growth by its PCE price index slipped to 2.8 percent in January from 2.9 percent in December. The annual rate of growth was expected to remain unchanged.

Meanwhile, the annual rate of growth by the core PCE price index, which excludes food and energy prices, ticked up to 3.1 percent in January from 3.0 percent in December. Economists had the pace of growth to remain unchanged.

A separate report from the Commerce Department showed U.S. economic growth slowed by much more than previously estimated in the fourth quarter of 2025.

Gold stocks moved sharply lower along with the price of the precious metal, dragging the NYSE Arca Gold Bugs Index down by 5.2 percent to its lowest closing level in over a month.

Significant weakness was also visible among steel stocks, as reflected by the 2.7 percent slump by the NYSE Arca Steel Index.

Airline and software stocks also saw notable weakness on the day, while utilities and natural gas stocks moved to the upside.

Commodity, Currency Markets

Crude oil futures are plunging $3.10 to $95.61 a barrel after surging $2.98 to $98.71 a barrel last Friday. Meanwhile, after slumping $64.10 to $5,061.70 an ounce in the previous session, gold futures are falling $34 to $5,027.70 an ounce.

On the currency front, the U.S. dollar is trading at 158.97 yen versus the 159.71 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.1480 compared to last Friday's $1.1416.

Asia

Asian stocks ended mixed on Monday as the ongoing war in the Middle East dragged into a third week, driving energy prices sharply higher and clouding the outlook for growth, earnings and inflation.

Regional losses remained capped somewhat after U.S. President Donald Trump called on allies to send naval escorts to protect vessels in the Strait of Hormuz.

Gold traded below $5,000 an ounce and the dollar was firm ahead of a Federal Reserve policy this meeting, with no change in interest rates expected.

Brent crude prices rose more than 2 percent to hover above $105 per barrel after Iran accused the United States of targeting and bombing Kharg Island, the oil hub of the Middle East nation.

China's Shanghai Composite Index slipped 0.3 percent to 4,084.79 as U.S. President Trump linked a trade summit with China to Beijing's assistance in securing shipping through the Strait of Hormuz.

A slew of Chinese data released earlier in the day pointed to a firm start to 2026 despite external headwinds.

Chinese industrial production and retail sales increased more than expected in the January to February period, while fixed-asset investment registered a small expansion, confounding expectations for a decline.

Hong Kong's Hang Seng Index rallied 1.5 percent to 25,834.02 after reports suggested that top U.S. and Chinese officials held "remarkably stable" talks in Paris, focusing on agricultural trade, critical minerals access, and new trade management frameworks.

Japanese markets ended slightly lower as hopes dimmed for a quick resolution to the U.S.-Israel war on Iran.

The Nikkei 2225 Index slipped 0.1 percent to 53,751.15, extending losses for a third straight session. The broader Topix Index settled half a percent lower at 3,610.73.

Prime Minister Sanae Takaichi said today issuing a maritime security order based on the Self-Defense Forces law to escort ships in the Middle East would be "legally difficult."

Separately, Finance Minister Satsuki Katayama said authorities are prepared to respond to movements in the currency market with bold steps after the yen sank close to the psychologically important 160-per dollar line.

Seoul stocks ended sharply higher after a choppy session. The Kospi jumped 1.1 percent to 5,549.85 led by gains in chipmakers. Samsung Electronics rallied 2.8 percent and SK Hynix surged 7 percent.

Australian markets ended lower a traders reacted to rising geopolitical tensions and braced for the Reserve Bank of Australia's rate decision.

The benchmark S&P/ASX200 Index fell 0.4 percent to 8,583.40, while the broader All Ordinaries Index dropped 0.5 percent to 8,793.40.

While weak commodity prices weighed on the mining sector, rate-sensitive financials rose on hawkish RBA bets. Energy stocks also advanced as oil prices remained elevated amid the effective closure of the Strait of Hormuz.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index dipped 0.2 percent to 13,164.58, marking a third straight decline after a weaker services reading suggested domestic demand remains fragile in the country.

Europe

European stocks have moved mostly higher on Monday as the U.S.-Israeli war on Iran entered its third week and U.S. President Donald Trump called on allies to send naval escorts to protect vessels in the Strait of Hormuz.

European Union foreign ministers will be meeting later in the day to debate a potential naval response to the effective closure of the key oil shipping route.

As inflation risks rise, traders also await cues from the central bank meetings this week in the U.S., the U.K., Europe and Australia.

the U.K.'s FTSE 100 Index is up by 0.7 percent, the German DAX Index is up by 0.6 percent and the French CAC 40 Index is up by 0.3 percent.

German lender Commerzbank surged nearly 4 percent after Italy's UniCredit made a €35 billion ($40 billion) bid for the bank.

Tecan Group shares slumped 4.3 percent. The Swiss laboratory automation company swung to a full-year net loss of CHF 110.7 million in 2025 and forecast that sales will increase in the low single-digit percentage range in local currencies in 2026.

Idorsia plummeted 12 percent. The pharmaceutical research company said that Srishti Gupta is stepping down as CEO and also leaving the Board of Directors after less than a year in office.

British building materials manufacturer Marshalls rallied 2.4 percent after reporting modest growth in revenue for 2025.

U.S. Economic News

New York manufacturing activity was little changed in the month of March, according to a report released by the Federal Reserve Bank of New York on Monday.

The New York Fed said its general business conditions index fell to a negative 0.2 in March from a positive 7.1 in February, with a negative reading indicating contraction. Economists had expected the index to decrease to 3.2.

Looking ahead, the New York Fed said firms remained optimistic conditions would improve in the months ahead, although the index for future business conditions dropped to 31.0 in March from 34.7 in February.

At 9:15 am ET, the Federal Reserve is scheduled to release its report on industrial production in the month of February. Industrial production is expected to inch up by 0.1 percent in February after climbing by 0.7 percent in January.

The National Association of Home Builders is due to release its report on homebuilder confidence in the month of March at 10 am ET. The housing market index is expected to tick up to 37 in March from 36 in February.