U.S. stock futures rally as megacap earnings and Fed meeting loom

According to CNBC, U.S. stock futures rose on Sunday night ahead of a heavy week of megacap earnings and a Federal Reserve meeting. Nasdaq 100 futures gained 1.2%, Dow Jones Industrial Average futures rose 294 points, or 0.6%, and S&P 500 futures added 0.7%. The move came after Ukraine struck an Iranian commercial vessel in the Caspian Sea, prompting Tehran to call it a "hostile and criminal act." U.S. equities are coming off another losing week, with the S&P 500 down 0.6% and the Nasdaq off 2.1% on Friday after back-to-back weekly losses, while the Dow fell 0.4% for a third straight weekly decline. Amazon, Apple, Meta Platforms and Microsoft are due to report results this week after Alphabet's disappointing earnings last week. Ken Mahoney, CEO of Mahoney Asset Management, said continued AI spending is the biggest risk, while any pullback in that spending could also be unwelcome for the market. The Federal Reserve is set to announce its latest interest-rate decision on Wednesday, with markets pricing in a meaningful chance of a quarter-point hike this week, according to the CME FedWatch Tool. Brent crude futures were last near $97 a barrel, and the U.S. 10 Year Treasury yield was around 4.68%.