U.S. stock index futures fell on Monday evening after President Donald Trump issued a dire warning against Iran over the conflict with Israel, keeping investors uncertain over the geopolitical outlook.
Futures fell after a vastly positive session on Wall Street, where gains in technology stocks put U.S. benchmarks close to record highs.
But sentiment was fragile amid some of the worst fighting between Iran and Israel in over 30 years, while anticipation of a Federal Reserve meeting also kept investors on edge.
S&P 500 Futures fell 0.4% to 6,061.50 points, while Nasdaq 100 Futures fell 0.6% to 22,048.0 points by 20:31 ET (00:31 GMT). Dow Jones Futures fell 0.4% to 42,694.0 points.
Among major aftermarket movers, Verve Therapeutics Inc (NASDAQ:VERV) rallied over 70% after the Financial Times reported Eli Lilly and Company (NYSE:LLY) was close to buying the biotech company for up to $1.3 billion.
Futures fall as Trump calls for Tehran evacuation Losses in futures came primarily after Trump said in a social media post that “everyone should evacuate Tehran,” as renewed hostilities between the two Middle Eastern powers stretched into a fourth straight day.
It was unclear on what grounds Trump was making the threat, although the president also chided Iran for not accepting a nuclear deal offered by his administration earlier this year.
Adding to fears of an escalation in the conflict, China was seen advising its citizens to leave Israel as soon as possible.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. But CBS News reported that despite Trump’s threat, the U.S. was not planning to be involved in the conflict. Reports earlier in the day said Iran was seeking U.S. intervention to ink a ceasefire, although Tehran largely denied reports that a ceasefire was close.
Defense Secretary Pete Hegseth said Trump was still seeking a nuclear deal with Iran.
Econ. data, Fed rate decision in focus Beyond geopolitical tensions, focus this week is on a swathe of U.S. economic cues, with retail sales and industrial production data due later on Tuesday.
The prints are expected to provide more insight into how U.S. consumers and businesses are grappling with increased trade tariffs, with any signs of cooling likely to spark more concerns over the world’s biggest economy.
The Fed is this week’s main event, and is set to kick off a two-day meeting on Tuesday. The central bank is widely expected to leave interest rates unchanged at the conclusion of the meeting on Wednesday.
But comments from Chair Jerome Powell, on the path of interest rates, will be squarely in focus, amid signs of cooling inflation and some resilience in the economy.
Wall Street indexes clocked strong gains on Monday, buoyed in part by hopes that the Iran and Israel conflict will deescalate shortly. Markets also rebounded from steep losses on Friday.
The S&P 500 rose 0.9% to 6,033.11 points, while the NASDAQ Composite surged 1.5% to 19,701.21 points. The Dow Jones Industrial Average rose 0.8% to 42,515.09 points.
