Stock Market Today: Futures Plunge as Iran War Escalates; Oil, Treasury Yields Jump Further

Stocks were poised for a sharply lower open Tuesday, with Dow Jones Industrial Average futures losing 700 points, as the conflict in the Middle East escalated. Meanwhile, oil futures soared for a second straight day.

Nasdaq 100, Dow, and S&P 500 futures pointed down 1.8%, 1.4%, and 1.4%, respectively, about three hours before the opening bell. Yesterday, the tech-heavy Nasdaq and benchmark S&P 500 rose 0.4% and 0.1%, respectively, while the blue-chip Dow Jones Industrial Average ended down 0.2%. The Nasdaq had declined as much as 1.6% in morning trading before rallying.

Fighting in the Middle East has shown no signs of slowing down since the U.S. and Israel launched military strikes against Iran early Saturday, including one that killed its Supreme Leader, Ali Khamenei. Iran, in turn, has retaliated against Israel and U.S. interests in several countries across the region, with Saudi Arabian officials blaming the nation for a drone attack on the U.S. embassy in Riyadh early Tuesday, and the State Department urged Americans to leave 14 Middle East countries immediately. President Donald Trump said the U.S. plans to continue its combat operations in Iran for four to five more weeks but could go longer.

West Texas Intermediate crude oil futures, the U.S. benchmark, were up 7% to above $76 a barrel in recent trading. They had jumped 8% Monday after Reuters reported that Iranian state media said the nation claimed the important Strait of Hormuz was closed and it would set fire to any ship trying to pass.

Shares of U.S. oil companies Exxon Mobil (XOM), Chevron (CVX), Marathon Petroleum (MPC), Occidental Petroleum (OXY), and Phillips 66 (PSX) were pointing further higher before the bell after rising yesterday.

Defense contractors Lockheed Martin (LMT), RTX (RTX), and Northrop Grumman (NOC) also pointed higher for a second straight day to begin the week, but Palantir Technologies (PLTR), another government contractor, was down 2% before the bell after having surged 5.8% yesterday to rank among the top S&P 500 and Nasdaq gainers.

Shares of U.S. airlines like Delta Air Lines (DAL), United Airlines Holdings (UAL), and American Airlines Group (AAL) pointed lower for a second consecutive session, as did those of cruise operators Norwegian Cruise Line Holdings (NCLH), Carnival (CCL), and Royal Caribbean Group (RCL).

Nvidia (NVDA) shares, which rebounded nearly 3% to pace the Dow yesterday after two sessions of sharp declines, were down 2% before the bell. The other six members of the Magnificent Seven group of tech giants also pointed lower.

Target (TGT) stock pointed 4% higher after the retailer issued better-than-expected full-year profit and revenue guidance. In other post-earnings moves, shares of Best Buy (BBY) surged 12%, Plug Power (PLUG) jumped 11%, and MongoDB (MDB) plunged 25%.

Bitcoin was trading around $67,300, down from overnight highs of about $69,700, as investors shied away from riskier assets. The U.S. dollar index, which tracks the value of the greenback against a basket of currencies, was almost 1% higher at 99.13.

The yield on the 10-year Treasury notes, which affects interest rates on all sorts of consumer loans, jumped to nearly 4.10% after closing Monday at 4.04%.

Gold futures pulled back about 2% to $5,215 an ounce, while silver futures sank 7% to $82.80 an ounce.