5 Things to Know Before the Stock Market Opens

• Crude oil futures jumped 8% to $104 per barrel after Trump threatened a military blockade of Iranian ports following failed peace negotiations
• Trump threatened a new 50% tariff on Chinese imports if intelligence confirms China is supplying weapons to Iran
• Goldman Sachs kicks off major bank earnings season with results expected Monday, followed by JPMorgan, Bank of America, Citigroup, and others this week

Market Summary: Geopolitical Tensions Drive Oil Surge, Stock Futures Decline

Key Market Movements

Stock futures declined Monday morning following failed U.S.-Iran peace talks over the weekend. Dow Jones Industrial Average futures fell 0.4%, while S&P 500 and Nasdaq 100 futures each dropped approximately 0.5%. Crude oil futures surged 8% to $104 per barrel. Gold futures decreased 1% to around $4,740 per ounce, while the 10-year Treasury yield held steady at 4.34%. Bitcoin traded near $71,000 after weekend volatility between $70,500 and $73,800.

Geopolitical Developments

President Trump announced plans for a U.S. military blockade following unsuccessful Iran negotiations, initially threatening to close the entire Strait of Hormuz before scaling back to targeting Iranian ports and coastal areas. Iran responded with counter-threats against regional ports.

Trump also threatened a new 50% tariff on Chinese imports following a CNN report suggesting China is supplying weapons to Iran, adding to existing trade tensions between the two nations.

Earnings Season

Goldman Sachs (GS) leads first-quarter bank earnings Monday at 7:30 a.m. ET, with analysts projecting revenue of $17.06 billion (up 13% year-over-year) and earnings of $16.52 per share. Major banks reporting this week include JPMorgan Chase (JPM) and Citigroup (C) on Tuesday, followed by Bank of America (BAC) and Morgan Stanley (MS) on Wednesday. Wells Fargo (WFC) also reports Tuesday.

Other notable earnings include Taiwan Semiconductor (TSM), Netflix (NFLX), Albertsons (ACI), and PepsiCo (PEP).

Market Implications

Investors are monitoring bank earnings for insights into consumer health and economic outlook amid inflation pressures from geopolitical conflicts and existing tariffs. Economic data releases this week include existing home sales, Producer Price Index, and Federal Reserve reports.