U.S. stock futures fell on Tuesday morning as fears that the U.S.-Iran conflict would persist longer than expected rattled investors. Futures on the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were down 1.89%, 1.48%, and 1.47%, respectively, at 8:17 a.m. EST on March 3.
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Over the weekend, the U.S. and Israel launched a joint strike on Iran, pushing oil prices higher. Investors shifted funds into safe-haven assets, driving gold futures higher amid rising demand.
During Monday’s regular trading, stocks rebounded sharply from earlier lows as traders leveraged the dip in share prices. The S&P 500 closed just above the flat line, while the tech-heavy Nasdaq Composite gained 0.36%. Meanwhile, the Dow Jones fell 0.15%.
The conflict escalated into its fourth day, with drones hitting the U.S. Embassy in Riyadh. U.S. officials are deploying more forces, and U.S. President Trump warned the war may drag on longer than expected. Markets are growing cautious, with gold rising and oil surging after Iranian state media claimed closure of the Strait of Hormuz, threatening to burn any passing ships and sparking supply fears.
Turning to trending stocks, Target (TGT) shares rose more than 3% after the big-box retailer reported better-than-expected results for Q4 FY25. Also, Best Buy (BBY) stock jumped 12% in Tuesday’s pre-market trading, as the consumer electronics retailer posted upbeat Q4 earnings.
In contrast, MongoDB (MDB) stock tanked 27% after the database software company issued a dismal outlook for its fiscal first quarter. Also, shares of electric vertical takeoff and landing (eVTOL) aircraft company Archer Aviation (ACHR) declined 4.4% in pre-market trading after guiding a wider-than-expected adjusted EBITDA loss for the first quarter.