Stock futures are holding steady as Wall Street digests escalating tensions in the Middle East and their potential impact on oil prices. Monday’s trading session saw broad declines across major indexes, fueled by concerns over a potential widening of the conflict between the U.S. and Iran. Despite the geopolitical uncertainty, some analysts remain optimistic, citing strong corporate earnings and a resilient economic outlook.
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U.S. stock futures were little changed Monday night as concerns about escalating conflict in the Middle East continued to pressure markets. The major averages suffered declines during Monday's regular session amid heightened geopolitical risk.
Market Snapshot:
- S&P 500 Futures: Near flatline
- Nasdaq 100 Futures: Down 0.1%
- Dow Jones Industrial Average Futures: Up 14 points
On Monday, the Dow fell 557.37 points, or 1.13%, the S&P 500 lost 0.41%, and the Nasdaq Composite slipped 0.19%.
The sell-off was triggered by reports that the United Arab Emirates was targeted by drones and missiles launched from Iran, further destabilizing an already fragile situation. The U.S. reportedly sunk Iranian boats in the Strait of Hormuz, though Iranian state media disputed these claims.
Oil prices initially rose on Monday but retreated in extended trading, with U.S. West Texas Intermediate crude futures falling 1%.
Despite the tensions, Morgan Stanley Wealth Management's Dan Skelly remains optimistic, suggesting the market is treating geopolitical events as temporary disruptions within a broader narrative focused on AI, the economy, and strong corporate earnings.
Earnings on Tap: Several companies are reporting earnings before Tuesday's opening bell, including Pfizer, DuPont, PayPal, HSBC, Anheuser-Busch InBev, Marathon Petroleum, Duke Energy, and Shopify. Traders will also be watching for reports on the U.S. trade deficit and Job Openings and Labor Turnover Survey.
Extended Trading Movers:
- Palantir (PLTR): Down nearly 3% despite beating earnings estimates.
- Pinterest (PINS): Up 15% on strong revenue guidance.
- Duolingo (DUOL): Down 13% after monthly active users missed expectations.
