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Stock futures tumbled on Monday after the U.S. and Israel attacked Iran over the weekend, causing oil prices to surge and adding an unstable Middle East to a list of growing worries for equity investors.
Futures for the Dow Jones Industrials stumbled 495 points, or 1%, to 48,505.
Futures for the S&P 500 index collapsed 63.25 points, or 0.1%, to 6,821.75.
Futures for the NASDAQ docked 311.5 points, or 1.3%. to 24,693.25.
The joint U.S.-Israeli strikes killed Supreme Leader Ayatollah Ali Khamenei over the weekend, marking a watershed moment for the Islamic Republic and one of its most consequential episodes since 1979.
President Donald Trump told reporters that U.S. military operations in Iran are “ahead of schedule,” but investors are worried about a prolonged conflict despite those comments.
Iranian officials have vowed a forceful retaliation, raising fears the conflict could spread across the region.
Defense stocks Raytheon, Northrop Grumman and Lockheed Martin were all higher by more than 5% in early trading following the attacks. Energy shares including Exxon Mobil and Chevron were up by about 4% apiece.
But a risk-off mentality sent most stocks lower with tech and banking shares leading the losses. Broadcom led chip stocks lower. Amazon and Alphabet fell. Morgan Stanley and Goldman Sachs were lower.
The geopolitical escalation compounds an already fragile backdrop for stocks. The S&P 500 sold off Friday and finished in the red for February amid renewed turmoil in artificial intelligence and software shares.
In Japan, the Nikkei 225 faded 1.4%, while in Hong Kong, the Hang Seng was off 2.1%.
Oil prices zoomed $4.74 to $71.76 U.S. a barrel.
Gold prices brightened $145.90 to $5,393.40 U.S an ounce.
