U.S. stock futures signaled anxiety Sunday night as Wall Street weighed the implications of deepening U.S. involvement in the Middle East with its attack on Iran’s nuclear facilities.
But the direct involvement in offensive operations—which included massive “bunker busters” dropped from stealth bombers—in what had been a conflict primarily between Israel and Iran still marked a major escalation.
Futures for the Dow Jones Industrial Average fell 152 points, or 0.36%. S&P 500 futures were down 0.39%, and Nasdaq futures slipped 0.53%.
Earlier on Sunday before premarket trading began, Wedbush Securities Managing Director Dan Ives had a bullish take for Wall Street in the wake of the U.S. attack on Iran.
U.S. oil prices surged 3.5% to $76.44 per barrel, and Brent crude leapt 3.5% to $79.70.
Iran’s ability to retaliate is constrained, Kpler noted, saying a shutdown of the Strait of Hormuz is unlikely. Meanwhile, an early OPEC+ output boost for August of 411,000 barrels per day or more is increasingly likely, it added.
Escalation of the Middle East conflict could be a test of whether U.S. bonds and the dollar are still seen as safe-haven assets in times of crisis.
The coming week will feature several key events and economic reports. Several Federal Reserve officials will speak throughout the week, including Chairman Jerome Powell who is appearing on Capitol Hill on Tuesday and Wednesday.
Data for existing home sales, new home sales, and pending sales are due Monday, Wednesday, and Thursday, respectively, as the housing market shows signs of oversupply and weak demand.
Also on Thursday, an initial reading on the trade deficit will come out amid Trump’s tariffs along with durable-goods orders.
On Friday, the Fed’s preferred inflation gauge, the personal consumption and expenditures price index, is due.
