Stock futures climbed on Monday as investors sought to bounce back from a challenging week in US markets. Futures for the S&P 500 rose 0.25%, the Dow Jones Industrial Average futures gained 155 points, or 0.31%, and Nasdaq-100 futures increased by 0.29%. This cautious optimism comes ahead of key central bank rate decisions scheduled later in the week, with the Federal Reserve announcing on Wednesday, followed by the European Central Bank on Thursday, and the Bank of Japan on Friday. Meanwhile, Asian markets showed mixed results, and oil prices retraced recent gains amid geopolitical concerns.

Last week’s market declines were driven by a broad sell-off, with the Dow sliding more than 650 points on Friday, the S&P 500 falling 0.5%, and the Nasdaq Composite dropping 0.2%. Rising oil prices, triggered by fears of strikes on Iran and attacks on Saudi Arabian energy infrastructure by Yemen’s Houthi militants, contributed to the volatility. Additionally, French government borrowing costs surged, but Moody’s maintained France’s Aa3 credit rating with a negative outlook, citing ongoing fiscal challenges and the need for a sustained budget effort.

Looking ahead, market participants are focusing on the Federal Reserve's upcoming interest rate announcement. Current futures imply a 90% probability that the Fed will keep rates steady at the 3.75% to 4% target range. Bank of America analysts indicate that a rate hike would be a difficult decision for the Fed, as it risks unsettling markets either through overtightening or raising doubts about its inflation-fighting resolve. The earnings calendar is also closely watched this week, with major tech firms such as Alphabet and Microsoft set to announce their quarterly results, which are expected to shed light on the AI sector dynamics amid fluctuating investor sentiment.

In other news, SpaceX announced it successfully closed a $40 billion debt financing deal to purchase AI-related GPUs, underpinning its investment-grade status backed by revenue from Starlink and rocket launches. Meanwhile, in Indonesia, stock indices declined despite governmental reforms aimed at improving market oversight, following warnings from MSCI about potential market status downgrades. Brazil’s presidential runoff concluded with Luiz Inácio Lula da Silva winning a historic fourth term, sparking sharp market reactions amid political uncertainty. These developments frame a volatile backdrop as global markets navigate central bank decisions and geopolitical risks this week.