Traders work on the floor of the New York Stock Exchange (NYSE) on May 27, 2026 in New York City.
Spencer Pratt | Getty Images
Stock futures fell Sunday night after Iran reportedly fired a missile at Israel, endangering a fragile cease-fire and raising uncertainty following last week’s plunge in the Nasdaq.
Futures linked to the Dow The Jones Industrial Average fell 80 points, or 0.2%. S&P500 futures and Nasdaq 100 futures Each decreased by 0.2%.
Asia-Pacific markets opened lower on Monday, with South Korean stocks leading the decline as the benchmark Kospi fell 8.4%. Japan’s Nikkei Stock Average fell 3.4%.
The reported Iranian attack has raised new concerns about the stability of the ceasefire between the United States and Tehran. The reported missile attack followed a post on X by Iranian Parliament Speaker MB Ghalibaf, who argued that the US naval blockade and alleged violations of agreements related to Lebanon constituted a violation of the ceasefire.
On Friday, Nasdaq Composite It fell 4.18% to 25,709.43, the biggest decline since April 2025. S&P500 It fell 2.64% to close at 7,383.74. Dow It lost 695 points and ended the week at 50,866.78, the day after hitting a new high. For the week, the S&P 500 fell more than 2%, the Nasdaq fell 4.7% and the Dow edged lower.
Friday’s decline came as U.S. Treasury yields rose after a better-than-expected May jobs report, fueling concerns that higher financing costs could weigh on companies investing heavily in AI expansion.
“The stock market may be becoming a victim of its own success,” said Karrie Cox, chief market strategist at Ritholtz Wealth Management. “While the job market has improved, the threat of high inflation still seems to be looming on everyone’s minds.”
“Growth and momentum are outpacing almost everything since the March lows,” he added. “This is not to be expected in a high-interest rate, high-inflation environment, and if cost pressures remain high, these strategies may be prone to disappointment.”
Over the coming week, investors will focus on inflation data and Friday’s public launch of Elon Musk’s SpaceX. The proposal is expected to be one of the biggest in Wall Street history and could be the market’s biggest test yet of the AI valuation story.
“Blockbuster products represent the peak of excess in past market cycles, and there seems to be an awkward silence on what this means for sentiment,” Cox said. “Many investors seem restrained and skeptical, but could such a disposition exist when the largest IPO in history is being planned?”
Investors will also be keeping an eye on the May Consumer Price Index and Producer Price Index reports, which will be released on Wednesday and Thursday respectively, and are expected to show continued inflationary pressures.
