5 Things to Know Before the Stock Market Opens

• Dow and S&P 500 futures dropped 1% while Nasdaq futures fell 1.4%; oil futures surged over 8-9% to their highest levels in over a year amid supply disruption concerns
• Saudi Aramco shut down its largest refinery after an Iranian missile attack, while flights were suspended across UAE cities Dubai and Abu Dhabi due to Iranian strikes
• Energy stocks like Occidental jumped 7% on rising oil prices, while airlines American and United fell over 6%; defense contractors Lockheed Martin and RTX gained 5%

Market Summary: Geopolitical Tensions Drive Sharp Market Movements

Market Overview:

U.S. stock futures opened sharply lower Monday, with Dow and S&P 500 futures down 1% and Nasdaq futures falling 1.4% as escalating Middle East conflict drives market volatility. The 10-year Treasury yield rose to 3.99% from 3.96%.

Key Developments:

President Trump indicated U.S. military operations in Iran will likely continue for several more weeks following weekend strikes that killed Iran's Supreme Leader Ali Khamenei. Retaliatory Iranian attacks targeted Israel, U.S. interests, and regional infrastructure, including hitting Saudi Aramco's largest refinery and suspending flights in Dubai and Abu Dhabi.

Commodity Surge:

• Brent crude jumped 9% to $79.50/barrel (highest since January 2023)
• WTI crude rose 8% to $72.75/barrel (highest since June 2023)
• Gold futures increased 3% to $5,400/ounce, nearing January's record highs
• Silver futures gained 2% to $95.40/ounce

Sector Winners:

Energy stocks rallied on oil price surge, with Occidental Petroleum up 7% and major oil companies ExxonMobil and Chevron gaining. Defense contractors surged, including RTX (+5%), Lockheed Martin (+5%), and Northrop Grumman (+5%).

Sector Losers:

Travel-related stocks plummeted on fuel cost concerns, with American Airlines and United Airlines each down over 6%, and Royal Caribbean falling 7%.

Market Implications:

Investors are rotating into safe-haven assets and energy stocks while avoiding travel sectors. Bitcoin recovered to $66,000 after dropping to $63,000 initially. Concerns center on potential Iranian interference with oil shipping through the Strait of Hormuz and elevated insurance/rerouting costs.