Futures Mixed as Iran Tensions Drive Oil Surge, Tech Rallies

U.S. stock futures are trading mixed Monday morning as escalating tensions with Iran drive oil prices higher while technology stocks extend Friday’s strong rally, with the Nasdaq 100 having surged 2.34% in the previous session.

Geopolitical Tensions Dominate Overnight

Oil markets are experiencing significant volatility as President Trump rejected Iran’s latest peace proposal, calling it “unacceptable.” The ongoing closure of the Strait of Hormuz continues to disrupt global energy supplies, with crude prices jumping on supply concerns. South Korea condemned an attack on a cargo ship in the strategic waterway and vowed a response, adding to regional tensions.

The geopolitical situation has prompted Goldman Sachs to delay its Federal Reserve rate cut outlook to December 2026, citing Iran war-driven inflation concerns. The dollar strengthened overnight following Trump’s dismissal of the Iranian peace offer, while gold fell on oil-driven inflation fears.

Asian Markets React to Energy Crisis

Asian markets reflected the global uncertainty, with India’s stocks and rupee declining after Prime Minister Modi urged fuel conservation amid the crude oil price spike. China opposed new U.S. sanctions over Iran and pledged to protect Chinese firms from secondary sanctions, further complicating the international response.

Technology Leads Friday’s Rally

The previous session saw a stark divergence in sector performance, with technology stocks surging 3.44% to lead all sectors. The Nasdaq 100 (QQQ) jumped $16.29 to close at $711.23, while the S&P 500 (SPY) gained 0.83% to $737.62. The Dow Jones (DIA) lagged with a modest 0.04% increase to $496.13.

Individual stock moves were dramatic, with Innodata Inc (INOD) skyrocketing 85.91% to $84.85 and RKLX gaining 67.70% to $59.30, though specific catalysts for these moves were not immediately clear.

Sector ETFs to Monitor

Energy sector ETFs are likely to see continued volatility as oil prices respond to Middle East developments. Technology ETFs may extend gains following Friday’s strong performance, while utilities and healthcare sectors, which declined 0.89% and 0.85% respectively, could face continued pressure.

Economic Calendar

Several smaller companies are scheduled to report earnings today, including SLMT, NHICU, EQFN, and OLVI, though analyst estimates are not available for these reports. The focus remains on geopolitical developments and their impact on energy markets and inflation expectations.

This article is generated from market data for informational purposes only. It does not constitute investment advice.