U.S. stock futures were down early Monday as tensions between the U.S., Israel, and Iran continue to escalate. Iran’s security chief, Ali Larijani, on Monday rejected talks with Washington and blamed President Donald Trump for the current tensions. Fears of a wider Middle East conflict lifted oil prices, with U.S. crude oil up 9% and Brent up about 10% at the time of writing.
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New trading tool for QQQ bullsFutures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) Index were down 2.08%, 1.64%, and 1.66%, respectively, at 3:29 a.m. EDT on March 2.
At the same time, investors moved money into safer assets. Gold futures rose about 3.42% as demand for safe-haven investments increased.
The strikes killed Iran’s Supreme Leader Ayatollah Ali Khamenei, marking a major event for the country. President Donald Trump said U.S. military operations in Iran were “ahead of schedule.” Investors worry the situation could expand into a wider war and disrupt supply, since Iran is one of OPEC’s largest producers. There is also uncertainty about who will lead the country now.
Much now depends on the Strait of Hormuz, a key route for global oil shipments. If fighting affects traffic there, energy prices could rise further and push inflation higher again.
The geopolitical tension adds to an already weak market backdrop. Stocks fell on Friday, and the S&P 500 ended February in the red as pressure in AI and software shares weighed on sentiment. The SPX fell 0.43%, the DJIA dropped 1.05%, and the Nasdaq 100 declined 0.30%.
The first week of March will be busy for earnings, with companies from cybersecurity, retail, AI, and e-commerce set to release results. Key reports include CrowdStrike (CRWD), Target (TGT), Broadcom (AVGO), Okta (OKTA), Rigetti Computing (RGTI), Costco (COST), and JD.com (JD).