US stock futures edged lower late Monday as Wall Street grappled with fallout from the escalating conflict in the Middle East.
Futures tied to the S&P 500 (ES=F) slipped about 0.2%, while Nasdaq 100 futures (NQ=F) fell 0.3%. Dow Jones Industrial Average futures (YM=F) dropped roughly 0.2%.
Monday saw the major gauges stage a comeback from steep intraday losses. The S&P 500 (^GSPC) finished slightly higher, the Nasdaq Composite (^IXIC) also climbed, and the Dow (^DJI) mostly recovered from steep early-session losses.
Investors appeared willing to buy the dip despite fears that an intensifying conflict between Washington and Tehran will pressure global markets. Defense and energy stocks led gains. Shares of Lockheed Martin (LMT) and Palantir (PLTR) jumped, while chip giant Nvidia (NVDA) advanced about 3%, helping support broader equity indexes.
Oil markets told a different story. Crude prices (BZ=F, CL=F) jumped on concerns that hostilities could disrupt key supply routes and reignite inflation pressures. According to Reuters, the Strait of Hormuz had been closed, with threats made against vessels attempting to pass through the waterway.
The conflict entered its third day Monday following joint US-Israeli strikes that killed Iran’s Supreme Leader, Ayatollah Ali Khamenei. President Trump indicated the war could last four to five weeks, though he acknowledged it could extend longer, with strong potential for economic knock-on effects to spread in the US and beyond.
Investors are also watching corporate earnings. Retail will see the largest slew of results, with Target (TGT) scheduled to report Tuesday, while later in the week reports are expected from wholesale retailer Costco (COST).
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Stock market coverage for Tuesday, March 3, 2026.