Escalating tensions between the U.S. and Iran weighed on investor confidence, while rising oil prices added fresh pressure ahead of a crucial earnings week.
U.S. stock futures were mixed early Monday after Wall Street ended last week in negative territory. Investors remain focused on the worsening conflict in the Middle East, which has lifted oil prices and increased uncertainty across global markets.
At the same time, traders are preparing for a busy week of corporate earnings led by Alphabet, Tesla and Intel.
KEY DETAILS
S&P 500 futures gained 0.2%, while Nasdaq-100 futures climbed 0.5%. Dow futures were little changed.
Last week, the S&P 500 fell 1.6%, the Nasdaq Composite dropped 2.9%, and the Dow Jones Industrial Average lost 0.9%. Chipmakers remained under pressure, with the VanEck Semiconductor ETF sliding nearly 9% for its third weekly decline in four weeks.
Market sentiment weakened further after the U.S. launched a ninth straight night of military strikes against Iran. The U.S. military also confirmed another service member was killed during recent operations, raising concerns that the conflict could continue to escalate.
Oil prices reacted quickly. U.S. West Texas Intermediate crude rose more than 3% above $85 per barrel, while Brent crude climbed above $91.
Meanwhile, investors are watching earnings from Alphabet and Tesla on Wednesday, followed by Intel on Thursday.
MARKET REACTION
Higher oil prices supported energy stocks, while semiconductor shares continued to struggle. Treasury yields edged higher as investors monitored geopolitical developments. In Asia, markets traded mixed, with South Korea's Kospi falling while Hong Kong's Hang Seng advanced.
WHY IT MATTERS
Geopolitical tensions are once again becoming a major market driver. Rising energy prices, pressure on technology stocks, and a packed earnings calendar could increase volatility across stocks, commodities, and currencies this week.
Investors will closely watch developments in the Middle East alongside earnings from major technology companies. Any escalation in the conflict or surprises from corporate results could shape market direction in the days ahead.
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Source: CNBS
Time: 5:00 PM EESt
