Stock futures lost ground Tuesday morning, while oil prices moved higher, as investors monitored developments in the escalating conflict between Israel and Iran.
Futures tied to the Dow Jones Industrial Average, S&P 500 and tech-heavy Nasdaq were each down 0.5% in recent trading. Stocks are coming off strong gains on Monday, when major indexes rebounded from steep declines on Friday and their first losing week in three.
The geopolitical landscape grew more complicated on Friday when Israel launched air attacks against Iran’s nuclear facilities and key personnel. The two countries have exchanged missile fire every day since then, raising concerns about the possibility of a broader conflict. President Donald Trump late Monday left a meeting of the G-7 group of world leaders earlier than expected to deal with developments in the Middle East, as Israel seeks further assistance from the U.S. in its campaign against Iran.
Oil prices continued their volatile run amid concerns that supply could be affected, either through the destruction of oil facilities or the closing down of key shipping routes. The broader worry for investors is that a long-term surge in oil prices could raise fuel costs, spur inflation and hinder economic growth. West Texas Intermediate futures, the U.S. crude oil benchmark, were up 1.5% at $72.85 per barrel this morning, after falling about 2% yesterday and jumping nearly 8% on Friday.
Traders were also keeping a close eye on economic data—retail sales numbers came in weaker than expected this morning, with reports on homebuilder confidence and industrial production on deck—ahead of the Federal Reserve’s decision on interest rates tomorrow. The Fed isn’t expected to adjust rates, but market participants will be eager to hear the central bank’s assessment of the economic outlook amid ongoing uncertainty about the impact of tariffs.
Shares of the world’s largest technology companies, which were up across the board during Monday’s rally, were mostly lower on Tuesday, though the moves were modest. Microsoft (MSFT), Apple (AAPL), Amazon (AMZN), Alphabet (GOOG), Meta Platforms (META), Broadcom (AVGO) and Tesla (TSLA) were each down less than 1%, while Nvidia (NVDA) edged higher.
Crypto stocks were also losing ground as the price of bitcoin fell to $105,700, down from a high of nearly $109,000 yesterday. Major bitcoin buyer Strategy (MSTR), crypto exchange Coinbase Global (COIN) and bitcoin miner MARA Holdings (MARA) were each down about 2%.
The yield on the 10-year Treasury note, which affects borrowing costs on all sorts of consumer and business loans, was at 4.41% in recent trading, down from 4.45% at yesterday’s close. The U.S. dollar index, which measures the performance of the dollar against a basket of foreign currencies, was up 0.2% at 98.15, after hitting a three-year low last week of around 97.60.
Gold futures were down 0.2% at $3,410 an ounce, losing ground for the second consecutive day after moving as high as $3,470 last week, near a record high, as some investors turned to the traditional safe haven amid the geopolitical uncertainty.