Futures linked to the Dow Jones Industrial Average were little changed, while S&P 500 futures fell around 0.4%. Nasdaq-100 futures led the declines, dropping about 1.01% as semiconductor stocks came under pressure in premarket trading.
Markets turned cautious after the US and Iran exchanged fresh strikes over the weekend. Tehran targeted US facilities in several Gulf countries and declared the Strait of Hormuz closed, although US President Donald Trump disputed the claim, saying the key shipping route remained open to commercial traffic.
Oil prices surge on West Asia tensions
Escalating geopolitical tensions sent crude prices sharply higher in early trade. West Texas Intermediate (WTI) crude rose about 3% to $73.83 a barrel after touching an overnight high of $75.08, while Brent crude gained around 3% to $78.52 a barrel, after briefly climbing to $79.80.
The latest developments have revived concerns over inflation just as investors prepare for two closely watched US inflation reports this week. The Consumer Price Index (CPI) is due on Tuesday, followed by the Producer Price Index (PPI) on Wednesday, both of which could shape expectations for the Federal Reserve’s interest rate path.
Chipmakers lead losses
Semiconductor stocks were among the biggest decliners in premarket trading.
US-listed shares of SK Hynix dropped 8%, giving up part of Friday’s gains following the South Korean chipmaker’s Nasdaq debut. Micron Technology and Sandisk each fell about 4%, while Seagate Technology lost 3%. Advanced Micro Devices (AMD) and Intel were also down around 2%.
Earnings season in focus
Investors are also gearing up for the unofficial start of the second-quarter earnings season, with major US banks set to report results later this week.
JPMorgan Chase, Goldman Sachs, Bank of America and other financial institutions are scheduled to announce quarterly earnings. Market participants will also watch Taiwan Semiconductor Manufacturing Co. (TSMC) for updates on AI-related demand, while Netflix and UnitedHealth Group are among the other major companies due to report this week.
