US Stock Index Futures Recover Slightly Amid Iran-Israel Conflict Concerns
Increased Risk Sentiment and Earnings Season Kickoff
US stock index futures edged higher Monday, recovering slightly from last week’s steep losses as fears of an Iran-Israel conflict battered risk sentiment. The first quarter earnings season also kicked off on a dour note.
At 06:55 ET (10:55 GMT), Dow Jones Industrial Average futures rose 100 points, or 0.3%, S&P 500 futures rose 23 points, or 0.5%, and Nasdaq futures rose 105 points, or 0.6%.
Focus on Iran-Israel Conflict
Concerns over a wider conflict in the Middle East intensified after Iran launched a mass drone and missile attack on Israel over the weekend. This retaliation followed an alleged Israeli strike against an Iranian consulate in Damascus, raising the possibility of broader war.
Israeli ministers indicated that retaliation would not be immediate, and Iran declared that its operation had concluded with no further plans against Israel.
Wall Street Hit by Weekly Losses
The main indices closed sharply lower on Friday, with Dow Jones dropping almost 500 points, S&P 500 falling 1.5%, and Nasdaq dropping 1.6%. Waning optimism over early U.S. interest rate cuts was a significant factor in the losses.
The main economic release Monday is March retail sales, expected to show a rise of 0.4% on the month, slowing from 0.6% the prior month.
Goldman Sachs, Johnson & Johnson Earnings
Weak earnings from major Wall Street banks set a dour tone for the first quarter. The earnings season continues this week, with Goldman Sachs and Charles Schwab reporting on Monday, and Johnson & Johnson, UnitedHealth Group, Bank of America, and Morgan Stanley on Tuesday.
Apple stock fell over 1% premarket, losing its No.1 phone maker status, while Tesla stock fell 0.7% amid reports of potential large-scale redundancies.
Crude Prices Retreat
Crude prices retreated Monday as fears of a wider regional conflict lessened following the limited damage from Iran’s attack on Israel. U.S. crude futures traded 0.6% lower at $85.11 a barrel, and Brent contract dropped 0.6% to $89.84 per barrel.
The market had already factored in an attack, and the potential for a more measured response from Israel may mitigate further escalation.
