US Stock Futures Rise on Strong Despite Middle East Tensions

US stock futures climbed on Monday, rebounding from the previous week's downturn, buoyed by strong earnings from Goldman Sachs, encouraging retail sales data, and hopes for de-escalation of Middle East tensions.

Over the weekend, Iran initiated its first direct attack on Israel from Iranian territory by launching drones and missiles on Saturday night. Despite most threats being intercepted, fears of further retaliation linger.

In premarket trading, Goldman Sachs shares surged over 3% after surpassing Wall Street's expectations in both revenue and earnings for the first quarter. This performance comes in the wake of other major bank reports last Friday, which saw JPMorgan shares drop 6% due to concerns over potential earnings from lending activities in the coming year.

Goldman Sachs additionally reported a 4.1% gain after posting first-quarter profits that exceeded analyst predictions, driven by a revival in underwriting and deal-making within its investment banking division. This led to the highest earnings per share the company has seen since 2021.

Meanwhile, the latest economic indicators showed a 0.7% increase in retail sales for March, suggesting that consumer spending remains resilient despite ongoing inflationary pressures. This positive data further contributed to the upward momentum in stock futures.