U.S. stock index futures declined Sunday evening, extending a four-week losing streak on Wall Street driven by escalating geopolitical tensions and persistent inflation concerns. S&P 500 Futures dropped 0.3% to 6,542.25, Nasdaq 100 Futures slipped nearly 0.4% to 24,008.0, and Dow Jones Futures edged down 0.16% to 45,821.0 by 19:50 ET.
Investor sentiment darkened after President Donald Trump issued a 48-hour ultimatum demanding Iran reopen the Strait of Hormuz — a critical global shipping lane responsible for roughly 20% of worldwide oil and gas supply — threatening to "obliterate" key Iranian energy infrastructure if the deadline was not met. Iran responded defiantly, warning of retaliatory strikes on energy and water infrastructure across the Middle East while threatening to shut the strait entirely.
The standoff sent oil prices sharply higher, fueling fears of energy-driven inflation that could push major central banks toward a more hawkish monetary policy stance. Several global central banks signaled readiness to raise interest rates in response, while the U.S. Federal Reserve maintained a cautious but hawkish tone, stopping short of explicitly committing to rate hikes.
With the conflict now entering its fourth consecutive week and no clear signs of de-escalation, equity markets continued to feel the pressure. The S&P 500 fell 1.5% on Friday, while the Nasdaq Composite and Dow Jones Industrial Average declined 2% and 1%, respectively. All three major indexes have dropped between 4% and 7% over the past 30 days as investors rotate out of risk assets.
Compounding the market turbulence, stronger-than-expected U.S. inflation data reinforced concerns that the Federal Reserve may hold off on interest rate cuts, further dampening the outlook for equities in the near term.
