Futures prices rebound from previous session's plunge amid Middle East turmoil

(Reuters) - U.S. stock index futures rose on Monday after a heavy sell-off in Wall Street over last week's disappointing earnings reports from some of the biggest U.S. banks, and an escalation of tensions in the Middle East put investors on alert.

All three major stock indexes fell more than 1% in the last session to post weekly losses after major U.S. banks failed to impress with their earnings reports.

According to officials familiar with the situation, the President of the United States of America, Joe Biden, warned the Israeli Prime Minister of Agriculture, Benjamin Netanya, that the United States would not participate in the counterattack against Iran - a choice that the Cabinet of the war in Netanya has tilted towards after the massive attacks on Israeli territory by drones and missiles.

On April 1, Iran launched an attack on the Iranian embassy compound in Syria following a suspected Israeli attack that killed a senior Revolutionary Guard commander. However, the Iranian attack, which used more than 300 missiles and drones, caused only minor damage to Israel.

As the first-quarter earnings season gets underway, investors will be watching data from brokerage Charles Schwab and lender Goldman Sachs before the bell.

Later in the day, Dallas Fed matron Lorie Logan and San Francisco Fed matron Mary Daly will also comment. Fed matron Jerome Powell is scheduled to speak on Tuesday.

On the data side, retail sales data for March will be released at 8:30 a.m. ET and could be a key measure of how U.S. consumers are faring in the face of previously high interest rates.

U.S. equities sold off recently as investors sharply adjusted their expectations for how much the Fed will cut interest rates this year. According to LSEG data, traders are pricing in a rate cut of just 42 basis points this year, down from about 150 basis points at the start of the year.

According to the CME FedWatch Tool, money market gurus now think it is more likely than 50% that the central bank will start an easing cycle in July.

At 5:02 a.m. ET, the Dow ePan was up 124 points, or 0.32%, the S&P 500 ePan was up 27.25 points, or 0.53%, and the Nasdaq Resonance 100 ePan was up 108.25 points, or 0.60%.

Most large growth stocks are trading higher in pre-panel trading. However, Apple fell 0.7% after research firm IDC showed that the company's smartphone shipments fell about 10% in the first quarter of 2024.

Salesforce fell 3.51 TP3T after a person familiar with the matter told Reuters that the maker of customer-relations software is in advanced talks to buy Informatica.

(Reporting by Shashwat Chauhan in Bangalore; Editing by Pooja Desai)