U.S. stock index futures were little changed early on Monday as investors assessed risks from rising oil prices and escalating tensions in the Middle East following an Israeli strike in Iran.
Futures for the S&P 500, Dow Jones Industrial Average and Nasdaq 100 were flat to modestly lower, suggesting limited follow-through from Friday’s broad market decline. The S&P 500 and Dow each fell 0.4% on Friday, while the Nasdaq slipped 0.5%, pressured by energy shares and concerns over higher fuel costs.
Brent crude oil futures rose above $90 per barrel for the first time since October, extending gains driven by supply disruption fears linked to the Israel-Iran conflict. West Texas Intermediate crude similarly climbed, adding to inflation concerns that could weigh on corporate earnings and consumer spending.
Analysts noted that while the immediate market reaction to geopolitical events can be volatile, the longer-term impact on equities often depends on the duration and scale of disruptions to energy supplies or global trade routes. The latest escalation follows months of heightened regional instability, which has periodically roiled markets.
Investors will also be monitoring corporate earnings reports due this week, including from major banks and technology firms, for further direction. Economic data releases on manufacturing and services activity are also on tap, providing additional cues on the health of the U.S. economy.
The VIX volatility index, often seen as a gauge of market anxiety, edged higher but remained below recent peaks, indicating that while risk sentiment is fragile, outright panic remains contained for now.
