U.S. stock index futures fell on Sunday evening as investors rushed out of risk-driven assets after Washington over the weekend attacked Iran’s nuclear sites, heralding a potential escalation in the Middle Eastern conflict.
Wall Street was also still reeling from a slew of weak economic prints and hawkish Federal Reserve comments from last week, with all three indexes logging a soft weekly performance.
Markets were spooked by a surge in oil prices, which spurred some concerns over high energy prices and sticky inflation.
Still, Sunday’s losses in futures were relatively small, with focus turning to upcoming purchasing managers index data for more cues on the U.S. economy. A slew of Fed officials are also set to speak this week, most notably a two-day testimony by Chair Jerome Powell starting from Tuesday.
S&P 500 Futures fell 0.3% to 5,997.0 points, while Nasdaq 100 Futures fell 0.5% to 21.746.50 points by 19:39 ET (23:39 GMT). Dow Jones Futures fell 0.3% to 42,376.0 points.
US attacks Iran nuclear facilities, retaliation in focus President Donald Trump said over the weekend that the U.S. had carried out several aerial strikes against Iran targeting the country’s nuclear facilities.
U.S. officials claimed the move was to prevent Tehran’s development of a nuclear weapon. But Iran decried the move, with focus now squarely on how the Islamic republic will respond.
Iran’s foreign minister warned of "everlasting consequences" for the attack, and that Tehran will consider all options in retaliation.
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Media reports showed that Iran was planning to block the Strait of Hormuz, a major shipping lane, in retaliation.
The White House’s messaging on the attack and its overall stance on Iran was also unclear, with Trump raising the possibility of a “regime change” in the country.
Israel was also seen keeping up its strikes against Iran, with their renewed conflict now stretching into an 11th day on Monday.
PMI data, Powell testimony on tap this week Focus this week is also on a string of key economic readings, with preliminary PMI data for June due later on Monday.
The print is expected to show business activity growing at a slower pace from the prior month, amid persistent fears of disruptions caused by Trump’s trade tariffs.
Several Fed officials are also set to speak in the coming days, most notably Chair Powell in a two-day testimony before Congress, starting from Tuesday.
Powell said last week that the Fed remained unconvinced of the case for more near-term interest rate cuts, while also trimming the Fed’s rate cut outlook for 2026.
