U.S. equity futures moved lower early Monday as renewed Middle East tensions weighed on investor sentiment. The decline followed U.S. strikes on Iranian sea mine rocket launchers at Larak Island in the Strait of Hormuz, raising market concerns about a wider confrontation.
At 4:12 p.m. (Bangkok Time), Dow Jones Industrial Average futures were down 0.1%. Futures tied to the S&P 500 declined 0.12%, while Nasdaq-100 futures fell 0.02%.
The latest pressure on risk assets came after U.S. forces targeted Iranian positions on Larak Island over the weekend. Iran later said it had carried out retaliatory attacks against U.S. bases in Jordan.
Markets were also assessing the prospect of additional economic pressure on Tehran. Treasury Secretary Scott Bessent reportedly said Washington intends to announce new secondary sanctions on Iran each week, beginning with banks connected to the Iranian regime.
Despite the geopolitical setback, major U.S. indexes remain on course to end August higher. The Dow is up about 2.1% for the month and is set for a fifth consecutive monthly advance. The S&P 500 has gained roughly 3%, while the Nasdaq is ahead by about 4%.
Technology shares have been the strongest driver of the monthly rally, helped by continued demand for artificial intelligence-related names. The S&P 500 technology sector has risen nearly 6% in August. Nvidia is up more than 8%, while Microsoft has gained 11% and Micron Technology has climbed 13%.
Still, the month has included sharp swings as inflation concerns pushed Treasury yields to multiyear highs. The Treasury Department attempted to ease selling pressure by signaling larger debt buybacks, though long-dated yields remain high. Federal Reserve Chairman Kevin Warsh said Friday that he remains concerned about inflation, indicating that better-than-expected summer readings had not convinced him that underlying price pressures had significantly improved.
Investors now turn to fresh economic indicators, including August Chicago PMI and the Dallas Fed Manufacturing Business Index. The week’s main macroeconomic focus will be Friday’s jobs report, especially after Warsh’s hawkish remarks lifted expectations for additional rate increases.
