S&P 500 and Nasdaq futures pared gains after US military action in Iran heightened Middle East tensions.
US military forces conducted strikes in southern Iran early Tuesday, citing self-defense against threats from Iranian forces. The operation, confirmed by US Central Command, targeted positions linked to recent attacks on American troops in the region.
Stock futures, which had been trading higher ahead of key economic data, trimmed gains following the news. The S&P 500 futures fell 0.2% while Nasdaq futures dropped 0.3%, reflecting investor caution amid escalating geopolitical risks.
Markets had previously shrugged off Middle East tensions, but direct US-Iran confrontation introduces new uncertainty. Oil prices remained steady, though analysts warn of potential supply disruptions if hostilities widen.