Stock Market Today: Wall Street Set To Pull Back As US-Iran Tensions Flare Again — Tesla, Intel, UnitedHealth In Focus

US stock futures retreated early Monday as a weekend surge in US-Iran tensions dashed hopes for a lasting Middle East peace deal, sending oil prices sharply higher and rattling investor confidence heading into a pivotal week of earnings.

Dow Jones futures dropped 0.70%, while contracts on the S&P 500 and the Nasdaq 100 each fell roughly 0.6% in early trading Monday.

The pullback comes after a winning week for Wall Street, with the S&P 500 and Nasdaq Composite climbing to all-time highs last week on the back of ceasefire optimism and the reopening of the Strait of Hormuz.

The weekend brought a sharp reversal. Iran had declared the Strait of Hormuz reopened, but by Saturday, vessel traffic through the key shipping lane was restricted again, with state media saying the US “did not fulfill their obligations.” Trump warned Sunday he would “knock out every single Power Plant, and every single Bridge, in Iran” if Tehran did not agree to Washington’s terms to end the conflict, with the fragile ceasefire set to expire this week.

Oil prices soared over 6% on Monday in response, though they remained below the key $100 level. U.S. benchmark West Texas Intermediate crude futures traded at around $88 per barrel, while global benchmark Brent crude changed hands just above $96.

This week brings a heavy slate of corporate earnings that could set the tone for broader markets. Earnings season accelerates from April 20 to 24, with key names including Tesla (NASDAQ:TSLA), Intel (NASDAQ:INTL), UnitedHealth Group (NYSE:UNH), and GE Aerospace (NYSE:GE) reporting results that could influence market sentiment across tech, healthcare, and industrials.

Meanwhile, the 10-year Treasury bond yielded 4.274%, and the two-year bond was at 3.741%. The CME Group’s FedWatch tool‘s projections show markets pricing a 99.5% likelihood of the Federal Reserve leaving the current interest rates unchanged in its April meeting.

The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ) were both lower in premarket trading. The SPY was down 0.61% at $710.14, while the QQQ lost 0.67% to $648.85.

Cues From Last Session

On Friday, major indexes built on earlier gains and closed out their third consecutive higher week, boosted by news that Iran declared the Strait of Hormuz completely open to commercial traffic. The Dow Jones Industrial Average jumped about 2.2%, and the S&P 500 gained 1.4%, with the Nasdaq also posting solid gains. The week’s flows went primarily into financial, discretionary, and tech stocks, all of which had lagged through much of March.

Upcoming Economic Data

There is no economic data scheduled for Monday. However, the week ahead is packed with market-moving events.

The Senate Banking Committee has scheduled a confirmation hearing at 10 a.m. ET on Tuesday, April 21, for Kevin Warsh, President Donald Trump’s nominee for Federal Reserve chair.

Thursday, April 23, brings the weekly Initial Jobless Claims report.

Friday, April 24, closes the week with the University of Michigan’s final Consumer Sentiment Index reading for April.

The New York Fed Staff Nowcast is also due Friday.

Commodities, Crypto, and Global Equity Markets

WTI crude oil futures surged approximately 6.99% to around $88.36 per barrel. Brent crude traded just above $96 per barrel. Gold futures slipped 1.36% to $4,813.30 per ounce. Bitcoin (CRYPTO: BTC) was last trading around $74,804, down about 0.65% over the past 24 hours.

European stocks fell broadly on Monday, with the pan-European Stoxx 600 down 0.9% in early trade. Germany’s DAX fell 1.3%, France’s CAC 40 dropped about 1.1%, and the U.K.’s FTSE 100 opened 0.4% lower, with most sectors in negative territory. Asia-Pacific markets were mostly higher overnight, though U.S. futures erased those gains as tensions escalated.

Image via Shutterstock

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.