U.S. stock index futures were largely unchanged on Monday evening, with investors cautious after a negative session on Wall Street and fresh reports of hostilities in the Middle East. The uncertainty followed accounts that Iran had launched further attacks in the Strait of Hormuz, a development that coincided with a near 6% jump in oil prices.
Futures steadied after the previous sell-off, reflecting a mix of profit-taking after a strong April rally and renewed geopolitical concerns. At 20:24 ET (00:24 GMT), S&P 500 Futures were slightly lower at 7,226.75 points. Nasdaq 100 Futures eased about 0.1% to 27,749.0 points, while Dow Jones Futures remained flat at 49,079.0 points.
Wall Street reaction
Major U.S. indexes finished lower on Monday, retreating from recent highs amid reports that Iran carried out attacks in response to a U.S. military operation aimed at reopening the Strait of Hormuz. The reports said Iran struck multiple vessels transiting the shipping lane and that an oil port in the United Arab Emirates was set ablaze.
The incidents raised fears of renewed escalation and threatened an already fragile ceasefire between the United States and Iran. President Donald Trump reiterated threats of attacking Iran, while Iranian officials stated the Hormuz crisis could not be resolved through military means. At the same time, Tehran indicated that Pakistan-brokered discussions with the U.S. were making some progress.
Those developments coincided with a marked rise in oil, which surged about 6% on Monday. The sharp increase in crude stoked investor concern about potential inflationary pressure arising from the Middle East tensions.
On the cash market, the S&P 500 closed down 0.4% at 7,200.81 points. The NASDAQ Composite slipped 0.2% to 25,067.80 points. The Dow Jones Industrial Average was the weakest of the three, dropping 1.1% to 48,941.90 points.
Earnings backdrop and calendar
Despite the immediate geopolitical worries, recent weeks have seen markets buoyed by a wave of solid first-quarter earnings. Chipmaker ON Semiconductor Corporation (NASDAQ:ON) and data analytics firm Palantir Technologies Inc (NASDAQ:PLTR) both reported strong quarterly results, although each saw its shares decline in aftermarket trading.
Investors will be watching several heavyweight reports due Tuesday. Those include major chipmaker Advanced Micro Devices Inc (NASDAQ:AMD), which is both a significant player in the semiconductor space and a peer to NVIDIA Corporation (NASDAQ:NVDA). Other notable companies set to report include e-commerce company Shopify Inc (TSX:SHOP), private equity firm KKR & Co LP (NYSE:KKR), and MicroStrategy Incorporated (NASDAQ:MSTR), one of the largest corporate holders of Bitcoin.
Beyond corporate results, attention this week will also focus on U.S. labor market data, with nonfarm payrolls for April scheduled for release on Friday. That print, along with the trajectory of oil and any further geopolitical developments, will likely shape investor sentiment in the near term.
Market context
In short, markets entered the evening in a holding pattern. Geopolitical headlines and a sharp move in oil prices have clouded a market that had been riding the momentum of positive earnings. With a busy corporate calendar and key economic data ahead, investors appeared to be pausing to reassess risk ahead of potential catalyst events.