Futures Climb on Chips as Geopolitics and Data Loom

Markets opened the post-holiday week with S&P 500 and Nasdaq futures higher, driven by gains in chip stocks, while investors prepared for the release of S&P and ISM services PMI readings and fresh job openings data. The moves came against a backdrop of renewed attention to Federal Reserve minutes due later in the week and ongoing shifts in trade policy. President Trump is scheduled to ring the opening bells at the NYSE and Nasdaq from the Oval Office to mark the launch of Trump Accounts, a program providing a $1,000 government seed contribution to more than 6 million families for children's stock investments.

Chip-equipment maker BE Semiconductor fell 7.4 percent after reports indicated delays in hybrid bonding technology adoption, a process viewed as important for AI chips. Lockheed Martin emerged as the frontrunner in a roughly $3.5 billion bid for naval defense firm Ultra Maritime, which specializes in anti-submarine systems. In Europe, EasyJet shares jumped nearly 10 percent on a takeover approach from U.S. private equity firm Castlelake, while Sky agreed to acquire ITV's media and entertainment division for £1.6 billion.

Separately, developments in the Russia-Ukraine conflict drew market attention. President Trump held calls with both Vladimir Putin and Volodymyr Zelenskyy over the weekend, Ukrainian forces struck oil facilities near St. Petersburg, and Russia conducted a large-scale missile attack on Kyiv that killed at least 11 people. The events precede a NATO summit in Ankara and have prompted investors to reassess geopolitical risk and energy supply. Asia-Pacific equities closed mixed, with Japan's Nikkei little changed and South Korea's Kospi lower.

Oil prices traded narrowly after OPEC+ confirmed an August production increase of 188,000 barrels per day. Fed funds futures currently price in 1.5 rate hikes over the next 12 months, a shift from earlier expectations of cuts. The top 1 percent of earners hold half of U.S. equity wealth, according to Federal Reserve data, even as the Dow approaches the 53,000 level.