U.S. stock futures slipped at the start of the week, as ongoing geopolitical risks in the Middle East weighed on risk appetite and investors awaited quarterly results from Nvidia and major retailers. Markets were also responding to climbing oil prices and a recent bond sell-off, signaling renewed volatility.
At 4.21 p.m. (Bangkok Time), Dow Jones Industrial Average futures were down by 0.61%. S&P 500 futures posted a decrease of 0.32%, and Nasdaq-100 futures moved lower by 0.11%.
The mood remained cautious as energy prices climbed, with West Texas Intermediate crude rising 1.02% to $106.50 per barrel on Monday, and Brent crude advancing 0.92% to $110.26. The increase in oil prices followed remarks from President Donald Trump, who cautioned Iran on social media that time for negotiation was limited, reinforcing concerns about renewed hostility.
The uptick in energy prices has continued to fuel worries about inflation, which contributed to declines seen in global equity markets and further pressured bonds. U.S. stocks were retracing after recently reaching record levels; both the S&P 500 and Nasdaq achieved new highs in the week prior, while the Dow briefly exceeded the 50,000-point mark.
However, yields on government bonds rose globally at the close of last week, dampening equity sentiment. The U.S. 30-year Treasury yield reached its highest point in roughly twelve months, and similar moves were noted in 30-year U.K. Gilts—now at levels last observed in the late 1990s—as well as in Japanese long-term bonds. This jump in yields weighed particularly on technology shares, leading the Nasdaq-100 to drop 1.5% on Friday, its steepest daily decline since late March.
Looking ahead, the market’s attention turns to quarterly reports from Nvidia, Target, and Walmart. These updates are set to arrive at a time when equities are displaying heightened sensitivity to economic data and geopolitical headlines.
