US Futures Slip as Oil Rallied Further

US stock futures fell on Tuesday as oil prices continued to rally on the expanding Middle East conflict, raising concerns about potential impacts on inflation and economic growth. In regular trading on Monday, the Dow rose 0.11%, while the S&P 500 and Nasdaq Composite declined 0.39% and 0.73%, respectively. The S&P 500 is approaching correction territory, down 9.4% from its January peak, while the Dow and Nasdaq Composite have fallen 10.5% and 13.4% from their highs. A retreat in Treasury yields failed to trigger a rebound following dovish comments from Jerome Powell, who said long-term US inflation expectations remain in check despite heightened Middle East uncertainties and noted that the central bank’s policy stance allows officials to assess the economic impact of the Iran war. Investors now await March’s consumer confidence index and February’s JOLTS job openings data.

The Dow Jones Index gained 50 points or 0.11 percent on Monday to close at 45216 points. Gains were led by Salesforce (3.19%), Travelers Companies (2.18%) and Walt Disney (1.92%). Biggest losers were Caterpillar (-4.02%), Cisco Systems (-3.58%) and Nvidia (-1.40%).

US stock indices were mixed on a volatile Monday as a sharp retreat in Treasury yields failed to sustain a broad based equity rally following dovish remarks from Federal Reserve Chair Jerome Powell. While the Dow edged 0.1% higher, the S&P 500 and Nasdaq Composite dipped 0.4% and 0.8% respectively as heavy losses in the semiconductor sector offset gains in financials and utilities. Powell signaled that the central bank intends to look through the current energy price shock with West Texas Intermediate futures surging amid persistent threats to Red Sea exports and Iranian infrastructure. Although the 10-year Treasury yield tumbled, chipmakers like Micron (-9.7%) and Lam Research (-5.4%) led the decline as investors pivoted toward energy and utility giants reaching all time highs. Despite President Trump's report of serious discussions in Iran the CBOE Volatility Index remained elevated as markets weigh resilient corporate earnings against the risk of an energy infrastructure meltdown.