Dow futures rebound from sell-off as Goldman earnings top Street, Israel thwarts Iran attack: Live updates

U.S. stock futures rose on Monday, rebounding from last week's sell-off following strong Goldman Sachs earnings and hopes that the conflict in the Middle East won't further escalate.

Futures tied to the Dow Jones Industrial Average climbed 212 points, or 0.6%. S&P 500 and Nasdaq-100 futures added around 0.6% each.

Iran launched drones and missiles on Israel on Saturday night, marking the first direct attack on Israel from Iranian territory. While the majority of the threats were intercepted, concerns of retaliation remain. 

Gold futures advanced slightly to trade at $2,376.30 an ounce. Bullion hit a record level last week and is up around 15% this year as investors seek safety from sticky inflation and geopolitical tensions.

But oil prices fell despite rising in the last few weeks prior to the attack amid growing Middle East tensions. That, along with the potential for Israel's response to be measured given the country thwarted the attack, offered positive signs for traders.

"This remains a dangerous situation, but risks to oil and markets may be a bit less than feared Friday on the eve of the attack," said Krishna Guha, Evercore ISI senior managing director, in a Sunday note. 

How Israel Prime Minister Benjamin Netanyahu will respond to the attack is a key outstanding question, Guha said. The Biden administration has made it clear it does not want Israel to retaliate, he noted. 

"Provided that Netanyahu looks like he is willing to follow U.S. advice, there may be some element of a relief rally in markets Monday," Guha said. "However, our colleagues in the energy team do not expect a big retracement in the price of oil." 

Goldman Sachs popped more than 3% in premarket trading after beating Wall Street expectations on both lines