U.S. stock futures plunged on Monday morning amid escalating worries about the U.S. and Israel’s joint strike on Iran over the weekend, which killed Iran’s Supreme Leader Ayatollah Ali Khamenei. Futures on the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were down 1.22%, 0.97%, and 99%, respectively, at 8:35 a.m. EST on March 2.
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New trading tool for QQQ bullsFears of a broader Middle East conflict drove oil prices higher. Also, investors shifted funds to safe-haven assets, pushing gold prices up. Geopolitical tensions are compounding an already fragile market environment. Stocks declined on Friday, with the S&P 500 closing February in negative territory amid pressure on AI and software stocks that soured sentiment. The S&P 500 fell 0.43%, the DJIA dropped 1.05%, and the Nasdaq 100 declined 0.30%.
Investors fear the conflict could escalate into a full-scale war, disrupting supplies from Iran, one of OPEC’s top producers. Leadership uncertainty in the country adds to the unease. The Strait of Hormuz, which is vital for global oil shipments, now holds the key.
Turning to trending stocks, shares of Exxon Mobil (XOM), Chevron (CVX), and other oil stocks were up more than 4% as the ongoing geopolitical crisis is expected to drive oil prices higher.
In contrast, shares of airlines like Delta Air Lines (DAL), American Airlines (AAL), and United Airlines (UAL), and travel companies such as Expedia (EXPE) and Booking Holdings (BKNG) declined as the conflict between the U.S. and Iran is expected to disrupt global travel.
On the earnings front, reports from notable companies, including CrowdStrike (CRWD), Rigetti Computing (RGTI), Target (TGT), Broadcom (AVGO), Marvell Technology (MRVL), and Costco (COST) are due this week.