Traders work on the floor of the New York Stock Exchange (NYSE) on March 2, 2026 in New York City, USA.
Brendan McDiarmid | Reuters
Stock futures fell on Tuesday as traders focused on rising geopolitical tensions and worried that the conflict between the United States and Iran could last longer than expected.
futures tied to Dow Jones Industrial Average I lost 977 points, or about 2%. S&P500 futures While it fell by 2%, Nasdaq 100 futures It fell 2.5%.
The decline comes after the U.S. embassy in Saudi Arabia’s capital Riyadh was attacked by a drone earlier in the day. President Donald Trump also warned that the conflict could last more than four weeks. Last weekend, Supreme Leader Ayatollah Khamenei was killed in a joint military attack between the United States and Israel.
Global oil prices continued to rise on Tuesday on concerns that tensions could disrupt oil infrastructure, raise fuel prices and increase inflation risks. The head of Iran’s Revolutionary Guards said the Strait of Hormuz, the world’s most important oil shipping route, was closed and Iran intended to set fire to ships attempting to pass through the route, Reuters reported, citing Iranian media.
Brent crude oil futures soared 9% and West Texas Intermediate futures rose more than 8%.
Stocks rebounded strongly on Monday, with the S&P 500 and Nasdaq erasing significant losses to close slightly higher. The Dow also closed well below its low.
“Historically, what appears to be a geopolitical crisis in the short term tends to largely resolve from a market perspective over the next six months, and when it does not, it is often due to an economic downturn that was not caused by the geopolitical crisis,” Ryan Detrick, chief market strategist at Carson Group, said in a note. “We believe markets have already priced in the possibility of a month-long conflict, so the size of any further moves could be limited and could trigger an earlier rebound if markets see a path to resolution.”
Heading into Tuesday, investors are also awaiting important earnings from cybersecurity companies cloud strike and retailers target. Quarterly reports from chip manufacturers broadcom Major membership warehouse costco It is scheduled for later this week.
