United States stock futures traded lower on Sunday night (Monday AEST) after reports that Iran had fired missiles at Israel, raising fresh concerns about the stability of a fragile ceasefire and adding to investor caution following last week's sharp technology-led market sell-off.
By 9:45 am AEST (11:45 pm GMT), futures linked to the Dow Jones Industrial Average were down 0.3%, while S&P 500 and Nasdaq 100 futures each slipped 0.2%.
The reported missile attack has renewed concerns about escalating tensions in the Middle East and the future of the ceasefire arrangement between Washington and Tehran.
The strike followed comments from Iranian Parliamentary Speaker MB Ghalibaf, who argued in a post on X that the United States' naval blockade and alleged violations of agreements relating to Lebanon constituted breaches of the ceasefire.
The latest geopolitical developments come after a difficult week for U.S. equity markets, particularly technology stocks.
On Friday, the Dow Jones Industrial Average fell 1.4%, a day after reaching a record high. The S&P 500 declined 2.6%, while the Nasdaq Composite plunged 4.2% to 25,709.43, marking its largest one-day decline since April 2025.
The losses left all three major benchmarks lower for the week. The Dow finished down 0.3%, the S&P 500 lost 2.6%, and the Nasdaq retreated 4.7%.
Friday's sell-off was triggered by a stronger-than-expected U.S. employment report, which reinforced expectations that the Federal Reserve may keep interest rates elevated for longer.
The May payrolls data pushed Treasury yields higher and fuelled concerns that rising financing costs could weigh on companies investing heavily in artificial intelligence infrastructure and expansion projects.
Investors now face a pivotal week for markets, with attention turning to inflation readings and one of the most anticipated public listings in recent history.
The market will closely monitor the release of the May consumer price index (CPI) on Wednesday (Thursday AEST) and the producer price index (PPI) on Thursday (Friday AEST).
Both reports are expected to provide further insight into the inflation outlook and could influence expectations for future Federal Reserve policy decisions.
Any signs that price pressures remain elevated may reinforce the view that interest rates will stay higher for longer, potentially placing additional pressure on growth-oriented technology stocks.
Markets will also be watching the public debut of Elon Musk's SpaceX on Friday.
The listing is expected to rank among the largest offerings in Wall Street history and is widely viewed as a significant test of investor appetite for high-growth companies tied to the artificial intelligence and advanced technology sectors.
