U.S. stock futures edge lower amid escalating geopolitical risks and rising Treasury yields, extending Friday’s sell-off.
U.S. stock futures traded modestly lower early Monday, signaling a potential extension of Friday’s sharp losses. Investor sentiment remained under pressure due to heightened Middle East tensions, particularly after warnings from former President Donald Trump regarding Iran, which stoked fears of renewed U.S. military action.
Friday’s session saw major indexes post significant declines as Treasury yields surged on speculation the Federal Reserve might delay rate cuts or even hike again. Oil prices also spiked after the Strait of Hormuz, a key oil shipping route, faced disruptions, raising inflation concerns.
Yields eased slightly in early Monday trade as crude futures retreated, offering temporary relief. However, markets remain focused on Tuesday’s expected White House national security meeting, which could further influence risk appetite.