US Futures Start the Week Lower

US stock futures dropped on Monday as the Middle East conflict entered its fifth week with no end in sight, pressuring global markets. Dow and S&P 500 futures both fell about 0.6%, while Nasdaq 100 futures lost 0.8%. Tensions escalated after President Donald Trump said he could “take the oil in Iran” and seize its export hub of Kharg Island, echoing the US military operation in Venezuela earlier this year. The US is also reportedly preparing for weeks of ground operations in Iran after additional troops arrived in the region. Meanwhile, Iran-backed Houthi militants in Yemen joined the conflict after targeting Israel over the weekend. On Friday, selling pressure intensified on Wall Street as investors reduced exposure ahead of the weekend, with the Dow losing 1.73%, and the S&P 500 and Nasdaq Composite dropping 1.67% and 2.15%, respectively. Investors now look ahead to key jobs reports this holiday-shortened week, alongside earnings from Nike, USA Rare Earth, and Conagra Brands.

US equity futures declined around 0.5% on Sunday evening as war in Iran entered a fifth week and investors began a holiday-shortened trading week. Investors doubts about a resolution to the Iran war deepened after Iran-backed Houthi militants in Yemen joined the conflict and additional US troops were deployed to the region. The three major averages fell sharply on Friday, with the Dow dropping 793 points, the S&P 500 hitting a seven-month low and posting its fifth straight weekly loss, and the Nasdaq declining over 2%.

The Dow Jones Index decreased -793 points or 1.73 percent on Friday to close at 45167 points. The decline was led by Amazon (-3.85%), Salesforce (-3.41%) and Visa (-3.38%).