US Stock Futures Slip on Renewed Mideast Tensions; Q2 Earnings Season Kicks Off

U.S. stock index futures retreated in evening trading on Sunday as escalating military conflict between the U.S. and Iran weighed on sentiment, while investors shifted focus to the start of the second-quarter corporate earnings season.

Mideast Conflict Intensifies

Investor caution grew after the U.S. and Iran reportedly exchanged more military strikes over the weekend. U.S. Central Command (Centcom) stated it had launched additional attacks on Iran, while separate reports indicated Tehran had retaliated by attacking U.S. bases in the region, according to Investing.com.

Adding to market uncertainty were conflicting statements regarding the Strait of Hormuz, a critical oil chokepoint. While Tehran claimed the waterway was closed to commercial shipping, Centcom asserted it remained open. The developments sent oil prices sharply higher in early trading.

Q2 Earnings Season in Focus

The week ahead marks the beginning of the second-quarter earnings season, which will provide a crucial health check on corporate America amid persistent geopolitical and economic headwinds. A string of major financial institutions are scheduled to report, including:

Ad

• JPMorgan Chase & Co. (JPM)
• Bank of America Corp. (BAC)
• Goldman Sachs Group Inc. (GS)
• Wells Fargo & Company (WFC)
• Citigroup Inc. (C)
• Morgan Stanley (MS)

Investors will scrutinize these reports for signs of how corporate profits have fared amid disruptions from the conflict and rising energy costs. Other notable reports this week include Netflix Inc. (NFLX), Johnson & Johnson (JNJ), and chipmakers ASML Holding NV (ASML) and TSMC (TSM).

Market Snapshot

The dip in futures follows a positive close to the previous week, which saw the S&P 500 finish near a record high. As of 7:16 PM ET (23:16 GMT), futures contracts for the major U.S. indices were lower:

• S&P 500 Futures fell 0.3%.
• Nasdaq 100 Futures declined by 0.5%.
• Dow Jones Futures were down 0.2%.