Dow, S&P 500, Nasdaq futures fall as oil jumps on Iran
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- Dow, S&P 500, and Nasdaq futures slumped over 1% as investors fled risk assets following the Iran attacks, with the S&P 500 already in negative territory for February.
- Oil prices jumped significantly, with Brent crude surging 13% and West Texas Intermediate up 8%, driven by Iran's role as a major OPEC producer and fears of sustained disruption in the Strait of Hormuz.
- Energy stocks like Exxon and defense stocks including Lockheed Martin found buyers, while travel-linked stocks such as Delta Air Lines, Norwegian Cruise Line, and American Airlines plunged due to rising fuel cost concerns.
- Gold surged above $5,400 an ounce, with JPMorgan anticipating a 10% 'risk premium' gain, as Treasury yields moved higher amid reduced bets on interest-rate cuts due to inflation prospects.
- Berkshire Hathaway's stock fell after reporting a 30% drop in operating profit, adding to market jitters.
- Upcoming economic data, including Friday's jobs report, and key earnings from Broadcom, Marvell Technology, Target, and Costco, will provide further insight into inflation and AI trade trends.
Why it matters: The escalating conflict threatens to ignite inflation, derail interest rate cut hopes, and fundamentally shift investment strategies towards safe havens and defense, while punishing sectors vulnerable to higher energy costs.
