Oil futures could move when they begin trading later on Sunday after Ukraine's drone attack on a major oil terminal in St. Petersburg, the largest such attack since Russia invaded Ukraine more than four years ago.
Investors are also worried about artificial intelligence, with SpaceX and Meta Platforms reporting earnings this week, plus Tesla's report. Fears around the AI trade dragged down the Nasdaq Composite index last week and especially semiconductor stocks, with the VanEck Semiconductor ETF notching a nine-day losing streak, down 10.5% on the week, the largest weekly drop since April 2025.
Both the S&P 500 Index and the Nasdaq Composite ended last week down. The S&P 500 was down 1.9%, in the largest percentage decline since the week ending June 26, according to Dow Jones Market Data. The tech-heavy Nasdaq was down 4.5%, also its biggest decline since the week ending June 26.
Ukraine used drones to strike the oil terminal and other targets in Russian President Vladimir Putin's hometown, The Wall Street Journal reported.
News of the attack follows President Donald Trump declaring an energy cease-fire between the two countries and his decision to waive sanctions on Russia that he had signed into law as part of the Lindsey O. Graham Sanctioning Russia and Iran Act.
Earlier this month, Trump said Putin has agreed to immediately supply over 300,000 tons of diesel to global markets, with 500,000 tons to follow in November, and another one million tons immediately after that.
Ukrainian President Volodymyr Zelensky told NBC News' Kristen Welker that Trump's decision to waive the sanctions on Russia means "strengthening Putin's war against us."
"It's really big support for Putin. He feels victory with sanctions and diesel deal and let down Starlink between us," Zelenskyy said, referring to Elon Musk's satellite internet network. "It's more support for Russian aggression, especially for their strikes against our civilians, against our energy projects."
Zelensky called the diesel deal "very dangerous," saying it was unlikely to have real influence on U.S. gasoline and diesel prices, which have risen because of the war in Iran and the blocking of the Strait of Hormuz.
Major stock indexes had mixed results last week. The Dow Jones Industrial Average closed up 0.7%, posting the largest two-week point and percentage gain since the week ending Aug. 14. The Dow is up 8.2% year to date.
The S&P 500 is up 11.9% year to date, while the Nasdaq is up 12.5% this year.