Wall Street futures took a hit on Monday following escalating tensions between Iran and the United States in the Gulf, leading to increased oil prices. The closure of the Strait of Hormuz by Iran, a vital passage for global energy, caused uncertainty, impacting investor confidence.
This geopolitical unrest drove crude futures up over 3%, while tech-heavy Nasdaq futures faced declines, particularly hitting chip stocks. Memory-chip manufacturers such as Micron Technology, Western Digital, and Sandisk suffered significant losses.
The coming week promises significant economic data and corporate earnings reports that could challenge the strength of the U.S. equity rally and test corporate resilience, amid renewed Middle Eastern tensions and concerns about inflation.
(With inputs from agencies.)