S&P 500 futures fell 0.7% early Monday after a weekend of fresh US-Iran military escalation soured risk appetite. Oil jumped, South Korea's Kospi plunged more than 9%, and traders now brace for June inflation data and the start of earnings season.
Renewed military escalation between the US and Iran over the weekend knocked risk appetite lower, and US equity futures followed. S&P 500 futures lost 0.7% early Monday, while Dow futures slipped 0.5% and Nasdaq futures tumbled 1.5% as traders sold. Tehran said it had targeted US facilities across several Gulf countries and declared the Strait of Hormuz closed, while President Donald Trump pushed back on Sunday, saying the shipping route stayed open to commercial traffic.
Oil climbs, Asian equities sink
Crude prices climbed in response. Brent crude jumped about 4% toward $79 a barrel, while West Texas Intermediate gained more than 3% to around $74. Higher oil prices often reignite inflation fears by raising energy costs across the economy.
Asian markets could not hold early gains. South Korea's Kospi plunged more than 9%, sinking below 7,000 to its lowest level since early May. The Kosdaq lost 2% and Japan's Nikkei 225 slid 1.7%. The selling reflected a classic risk-off move, with investors rotating away from assets seen as riskier, such as equities, as geopolitical uncertainty rose.
Earnings and inflation data ahead
Geopolitics dominated the headlines, but earnings season is set to shift the spotlight. JPMorgan, Goldman Sachs, Morgan Stanley, Bank of America, Citigroup and Wells Fargo all report this week, alongside Netflix, Johnson & Johnson and UnitedHealth. Analysts project second-quarter S&P 500 earnings growth of more than 25% year over year, a high bar for corporate America to clear.
Investors digesting the latest US-Iran turn now face another catalyst on Tuesday: the June consumer price index report, which could reshape Federal Reserve expectations.
Source: TradingView
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