United States stock futures edged lower on Monday night (Tuesday AEST), following a weak Wall Street session as investors weighed escalating tensions between the United States and Iran while awaiting a busy week of corporate earnings and key inflation data.
By 9:55 am AEST (11:55 pm GMT), Dow futures were down 0.2%. S&P 500 futures slipped 0.2%, while Nasdaq-100 futures lost 0.4%.
The declines followed a broad sell-off during Monday's regular session after U.S. President Donald Trump announced the reinstatement of a blockade on Iranian shipping through the Strait of Hormuz.
"We are reinstating the THE IRANIAN BLOCKADE, so named because it is only stopping Iran’s ships or customers from entering or leaving," Trump said in a post on Truth Social.
The announcement sent oil prices sharply higher and weighed on equities. The Dow Jones Industrial Average lost 0.3%, the S&P 500 fell 0.8%, the Nasdaq Composite slid 1.6%.
Brent crude surged more than 9%, recording its biggest one-day gain since 2020, while U.S. Treasury yields climbed as investors worried higher energy prices could keep inflation elevated.
Attention is now turning to the start of the second-quarter earnings season, with JPMorgan Chase, Goldman Sachs and Bank of America among the major companies scheduled to report before Tuesday's opening bell.
According to FactSet Earnings Insight, analysts expect S&P 500 companies to post year-on-year earnings growth of 23.6% for the second quarter.
Investors will also be watching the June consumer price index (CPI) report, due for release later in Tuesday's U.S. session, for further clues on the inflation outlook.
Federal Reserve Chair Kevin Warsh is also scheduled to begin two days of testimony before Congress. The appearance marks Warsh's first congressional testimony since becoming Fed Chair and is expected to provide further insight into the Fed's policy outlook.
