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U.S. Stock Futures Dip as Mideast Tensions Rise Ahead of Key Inflation Data, Q2 Earnings
U.S. stock index futures declined on Monday evening amid escalating military tensions between Washington and Tehran, adding to investor caution ahead of key inflation data and the kickoff of the second-quarter earnings season.
By 7:23 PM ET (23:23 GMT), S&P 500 Futures were down 0.2%, Nasdaq 100 Futures had fallen 0.3%, and Dow Jones Futures had slipped 0.17%.
Geopolitical Headwinds Intensify
Market sentiment soured after U.S. Central Command reported it had launched additional strikes against Iranian targets. The action followed an announcement from President Donald Trump that a naval blockade of Tehran was back in effect, according to the source material. These developments follow a week of hostilities in the Strait of Hormuz, a critical waterway for global energy shipments.
The heightened conflict sent oil prices jumping by nearly 10%, stoking concerns about a new wave of energy-fueled inflation that could complicate the outlook for interest rates.
Inflation and Earnings in Focus
Investors are awaiting a series of major domestic catalysts on Tuesday. The June Consumer Price Index (CPI) report is set to be released, a crucial data point that will likely influence the Federal Reserve's next monetary policy moves. The report comes after Fed Governor Christopher Waller said earlier Monday that the central bank may need to raise interest rates soon if inflation remains persistently above its 2% annual target.
AdTuesday also marks the unofficial start of the Q2 earnings season, with several major Wall Street banks scheduled to report, including:
- JPMorgan Chase & Co (JPM)
- Bank of America Corp (BAC)
- Goldman Sachs Group Inc (GS)
- Wells Fargo & Company (WFC)
- Citigroup Inc (C)
Monday's Market Recap
The move lower in futures follows a negative session on Wall Street, where a sell-off in technology stocks weighed on the major indexes. The tech-heavy NASDAQ Composite led the decline, falling 1.55% as investors questioned high valuations in the artificial intelligence sector and took profits.
The S&P 500 shed 0.8%, while the Dow Jones Industrial Average finished the day down 0.26%. Investors will also be closely watching quarterly results from chip industry bellwethers ASML Holding NV and TSMC later this week for further signals on the health of the tech sector.