US stock futures fell sharply on Monday as oil prices surged past $100 a barrel amid the escalating conflict in the Middle East, heightening fears that rising energy costs could slow economic growth and reignite inflation. Dow and S&P 500 futures declined 1.3% and 1.6%, respectively, while Nasdaq 100 futures slid 2%.
With the war involving Iran entering its second week and oil shipments effectively choked off through the Strait of Hormuz, several regional producers — including Kuwait, Iran, and the UAE — have reduced crude output as storage capacity nears its limit. Wall Street was already under pressure last week, after weaker-than-expected payrolls data amplified inflation worries tied to the conflict. The Dow ended the week down 3%, the S&P 500 lost 2%, and the Nasdaq slipped 1.2%.
Investors now look to this week’s CPI and PCE inflation reports for guidance on the market’s direction, alongside earnings updates from Oracle, Adobe, Hewlett Packard Enterprise, and others.
