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Dow Jones Industrial Average futures fell 40 points, or 0.1%. S&P 500 futures hovered just below the flatline along with Nasdaq-100 futures.
The major U.S. stock benchmark dropped in regular trading after President Donald Trump said he would reinstate a blockade on Iranian shipping through the key 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 surging and stocks sliding. The S&P 500 shed 0.8% on the day, while the Nasdaq Composite dropped 1.6%. The Dow pulled back by more than 100 points, or around 0.3%. Brent crude soared more than 9% for its biggest one-day gain since 2020.
Treasury yields rose sharply as well, as investors feared higher oil prices could keep inflation elevated.
The volatility comes as Wall Street awaits the release of corporate earnings reports. JPMorgan Chase, Goldman Sachs and Bank of America are among the companies set to report Tuesday before the bell.
“Today was a little bit of an outlier. Everything was kind of down today. But in general, it doesn’t really change the way we look at the earnings season. We feel pretty constructive about large tech in general. We do think earnings have some upside,” Michael Graham, director of research and investment strategy at Canaccord Genuity, told CNBC’s “Closing Bell: Overtime.”
Analysts expect S&P 500 earnings grew by 23.6% in the second quarter from the year-earlier period, per FactSet.
Inflation data for June is also on deck Tuesday, with the latest consumer price index reading scheduled for 8:30 a.m. ET. Fed Chairman Kevin Warsh also will meet with lawmakers on Capitol Hill Tuesday as part of his two-day “Humphrey Hawkins” reports on monetary policy. It is the first time, the new Fed chief will present the central bank’s semiannual reports.
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