U.S. stock futures rallied on Monday as oil prices and Treasury yields slipped, with Wall Street looking to recover from a mostly lower week. Dow Jones Industrial Average futures popped 450 points, or 0.9%. S&P 500 futures and Nasdaq-100 futures climbed 0.7% and 1%, respectively. Last week, the Dow slid 1.7% for its worst performance since March. The S&P 500 was off about 0.1%. Only the tech-heavy Nasdaq posted a gain, up 0.7%. Monday’s advance was aided by a 3% drop in U.S. crude to $97.09 per barrel. International benchmark Brent slid more than 3% as well to $100.50. Those moves come after the latest escalation in hostilities in the Middle East over the weekend. Iran-backed Houthis said they attacked Saudi Arabia with missiles and drones on Saturday. Later in the day, the U.S. State Department warned Americans to reconsider traveling to the Middle East as the U.S. and Iran traded threats to resume attacks. However, diplomacy between the U.S. and Iran could still be on the table in the near term, as President Donald Trump told Fox News he would probably be open to meeting with Iranian President Masoud Pezeshkian during this week’s UN General Assembly. JPMorgan analysts also noted recently that oil flows “remain surprisingly strong” despite the recent disruptions. Treasury yields declined alongside the fall in oil. The 10-year Treasury note yield shed more than 3 basis points to 4.957%, as did the yield on the 30-year Treasury bond to 5.294%. As the U.S. struggles with taming sticky inflation and elevated bond yields, the Federal Reserve hiked interest rates last week for the first time in three years. “Higher-for-longer energy prices add to the case for further tightening,” wrote Ed Yardeni, president of Yardeni Research, in a Monday note. He also pointed out that the risks to supply are “not going away,” saying that the Middle East conflict “continues to threaten oil production and shipping, while Ukrainian strikes on Russian refineries and sanctions on Russia are further constraining global fuel supplies.” “The longer this energy shock persists, the greater the risk of second-round inflation effects,” he continued. That could heighten the significance of a key summit this week between U.S. President Donald Trump and Chinese President Xi Jinping, which will cover artificial intelligence, tariffs, and critical minerals, among other economic issues. Treasury Secretary Scott Bessent met with Chinese Vice Premier He Lifeng ahead of the visit. AI-related stocks were higher in the premarket Monday. Shares of Intel gained more than 5%, while others such as Dell Technologies and Advanced Micro Devices added more than 2% and 3%, respectively. “The same geopolitical conflict inflating energy prices is also what’s keeping the [Federal Reserve] hawkish and what’s squeezing Chinese refiners,” wrote Jeffrey Roach, chief economist at LPL Financial. Fed Chairman Kevin Warsh’s committee “has conditioned its inflation outlook on oil markets settling down, and Beijing’s fiscal calculus runs through the same variable.” South Korea’s Kospi rose 1.65% to 7,007.72, while Australia’s benchmark S&P/ASX 200 was flat at 8,731.90. Hong Kong’s Hang Seng index was up 0.95% in the last hour of trade on Monday, while mainland China’s CSI 300 closed 0.71% higher at 4,539.56. Japan’s markets were closed for a holiday. Gold prices were little changed on Monday as market participants assessed developments in the Middle East and their implications for inflation and interest rates. Spot gold was nearly steady at $4,379.74 per ounce by 0027 GMT after hitting a one-week peak on Friday. US gold futures for December delivery were down 0.1% at $4,419.40. “The focus remains on geopolitics, oil, and the reaction in bond yields. For gold to gain meaningful upside traction, a clear move lower in oil and/or bond yields is likely required,” said Tim Waterer, chief market analyst at KCM Trade. “Gold may trade in a roughly $4,200 to $4,580 range in the near term.”