Escalating tensions with Iran and weak economic signals weigh on equities ahead of US trading, dragging futures lower.
US President Donald Trump threatened fresh strikes against Iran’s infrastructure, reigniting geopolitical tensions as S&P 500 futures fell 1.1% and Nasdaq futures declined 1.6%. The move follows stalled negotiations and a naval blockade, reversing earlier claims of a near-deal.
Markets were already jittery after hot jobs data on Friday stoked fears of a more hawkish Federal Reserve. Tech shares bore the brunt of the selloff, with futures signaling broader risk aversion ahead of the session.
Trump’s timing raised speculation, as the remarks followed concerns over potential market reactions to upcoming US CPI data. Analysts suggest the escalation may aim to divert attention from economic pressures.