U.S. equity futures showed mixed movement early Monday after renewed conflict between the United States and Iran unsettled global markets. Investors focused on geopolitical risks in the Middle East, as military actions and threats to regional shipping routes weighed on sentiment despite the start of earnings season and upcoming key economic reports.
As of 4:29 p.m. (Bangkok Time), Nasdaq futures fell 0.93%, S&P 500 futures slipped 0.26%, while Dow futures edged up 0.1% due to limited exposure to semiconductor names.
Chip-related stocks experienced selling pressure prior to the market open, with U.S.-traded shares of SK Hynix dropping 10.4% in premarket action after the company’s Nasdaq listing last week, where it surged 13%. Earlier in Asian trading, SK Hynix’s Kospi-listed shares declined more than 15%.
Military exchanges between Iran and the United States intensified during the weekend. Reports indicated Iranian forces targeted U.S. installations in several Gulf nations and announced a closure in the Strait of Hormuz. President Donald Trump, however, maintained that the trade route remained operational, countering Iranian statements. The White House had authorized airstrikes against Iran on Saturday following an Iranian attack on a commercial vessel passing through the strait.
The increased hostilities pushed crude oil prices higher. Brent crude contracts advanced 1.88% to $77.44 per barrel on Monday, while West Texas Intermediate futures gained 1.85% to reach $72.73.
Investors are also preparing for significant domestic events this week, including Federal Reserve Chair Kevin Warsh’s initial testimony before the House Financial Services Committee, coinciding with the official release of June’s Consumer Price Index data.
Additionally, quarterly results from major financial firms such as JPMorgan Chase, Morgan Stanley, Bank of America, Citigroup, Goldman Sachs, and Wells Fargo are expected, along with reports from Netflix, Johnson & Johnson, and UnitedHealth.
