US equity futures fell sharply on Tuesday as the lack of meaningful de-escalation in the war involving Iran darkened the global economic outlook. Futures on the S&P 500 and Dow were down about 0.4%, while Nasdaq 100 contracts dropped more than 1.7%, with all three indices sliding to at least their lowest levels of the year.
Hostilities between Iran and US allies in the Middle East entered a fourth day, including strikes on energy infrastructure in the Persian Gulf and an official Iranian threat to target any vessels transiting the Strait of Hormuz. Benchmark oil and natural gas prices jumped, pushing Treasury yields sharply higher across the curve and weighing on all credit‑sensitive sectors. Major technology names including Nvidia, Microsoft, Apple, and Alphabet traded lower in premarket dealings.
In financials, sentiment deteriorated as investors rushed to redeem holdings in a flagship private credit fund, intensifying worries in a sector already unsettled by Blue Owl’s decision to suspend redemptions. By contrast, Target traded higher after issuing upbeat guidance.
