Wall Street Futures Flat as Middle East Flare-Up Rattles Monday Session
CNBC reported Monday that U.S. stock futures were barely moving overnight after all three major indices closed in the red, with Middle East tensions rattling investor sentiment and pushing oil higher during the regular session.
Dow Takes the Hardest Hit as Middle East Tensions Markets Sour
The blue-chip Dow Jones Industrial Average bore the brunt of Monday’s selloff, shedding 557.37 points or 1.13% by the closing bell. The S&P 500 fell 0.41% and the Nasdaq Composite slipped 0.19%. After hours, S&P 500 futures traded near the flatline while Nasdaq 100 futures edged down 0.1%. Dow futures added a marginal 14 points.
Iran Strike Claims Shake a Fragile Ceasefire
The catalyst for the jitters came from the United Arab Emirates, which said Iran launched drones and missiles against it on Monday. That put a brittle U.S.-Iran ceasefire under fresh strain. U.S. Central Command Admiral Brad Cooper said American forces eliminated six small Iranian vessels attempting to disrupt commercial shipping in the Strait of Hormuz, Reuters reported. Iranian state media disputed that account entirely.
Oil prices climbed during the regular session on the back of supply-route anxiety, though West Texas Intermediate crude futures pulled back roughly 1% in extended trading.
A Pattern Investors Have Seen Before
Despite the sharp Dow decline, not everyone on Wall Street hit the panic button. Dan Skelly, head of market research and strategy at Morgan Stanley Wealth Management, told CNBC’s Closing Bell: Overtime that the current dynamic resembles past episodes of geopolitical shock. He described the market as treating geopolitical flare-ups and policy disruptions like temporary interruptions along a longer narrative driven by artificial intelligence, economic fundamentals, and resilient corporate earnings. Skelly pointed to last April’s Liberation Day selloff and subsequent recovery as a comparable episode.
Earnings Front Stays Busy
The macro anxiety arrives in the middle of a dense earnings stretch. Companies including Pfizer, PayPal, Shopify, and HSBC were all set to report before Tuesday’s opening bell. After the Monday close, Palantir beat earnings estimates but still saw its shares fall nearly 3%. Pinterest surged roughly 15% after issuing stronger-than-expected revenue guidance. Duolingo slid around 13% after monthly active user numbers missed forecasts for the first quarter.
Traders were also watching for Tuesday’s U.S. trade deficit reading and the latest Job Openings and Labor Turnover Survey data, two figures that could add further texture to the Fed’s evolving rate calculus.
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