U.S. stock futures pointed to a cautious start on Monday, with investors grappling with renewed geopolitical risks and heightened inflation concerns after Federal Reserve Chair Kevin Warsh signaled further policy tightening may be required.
The Dow Jones Industrial Average futures were indicated 0.3% lower at 53,396 points, while the Nasdaq 100 futures fell 0.2% to 29,362, according to broker IG. The subdued tone reflected lingering unease over Warsh’s remarks at the Jackson Hole symposium, where he cautioned that inflation had not yet sufficiently moderated and that the Fed still had "work to do." Analysts at Vantage Global Prime noted the hawkish tone had shifted market expectations back toward a potential rate hike.
Geopolitical tensions escalated after U.S. forces conducted airstrikes on two Iranian missile launch sites near the Strait of Hormuz, a critical shipping corridor. Iran retaliated by targeting two U.S. bases in Jordan, further complicating prospects for a negotiated end to the conflict, according to Pepperstone. The renewed hostilities contributed to a rise in Brent crude prices, which climbed above $91 per barrel.
Among major U.S. tech stocks, Nvidia and Meta edged higher by 0.7% and 0.5% respectively, while Tesla, Alphabet, Amazon, Apple and Microsoft all posted declines of up to 0.9%.
California’s new wildfire risk regulations weighed heavily on utilities, with PG&E, Edison International and Sempra falling between 7% and 14%. GameStop slumped 5% after warning of a second-quarter net sales decline to $780–800 million, down from $972 million a year earlier, citing store closures and the divestment of its France operations.
In Switzerland, the SMI slipped 0.24% to 14,369.89 points by midday, trading within a narrow 40-point range since the open. Holcim led SMI decliners with a 0.9% drop, followed by Lonza and ABB at 0.9% and 0.6% respectively. Logitech was among the few gainers, up 0.5%, alongside Swisscom and Novartis. Kühne+Nagel, which had surged post-open, settled flat.
The SMI’s defensive tilt provided some cushioning compared with sharper losses in the German DAX. Swiss Life and Partners Group are scheduled to release half-year results on Tuesday, while London’s absence due to a public holiday contributed to subdued activity.
Utilities and life sciences names faced sector-specific pressures. Givaudan fell 0.4% and International Flavors & Fragrances dropped 7% amid concerns over a new cartel investigation in India and persistent margin pressures. Accelleron tumbled 4%, extending a volatile performance, while Gurit surged 4.2% after UBS maintained its buy rating despite trimming the price target to CHF 39 from CHF 43, citing slower growth in wind materials post-2027 due to the loss of one-off effects. UBS noted Gurit’s long-term contracts and diversification into defense markets supported its outlook.
Zurich Airport shares rebounded 0.7% after Friday’s 7.7% slump on earnings, with Vontobel defending the move as overdone and reiterating its buy recommendation.
UBS shares were down 0.2% as Switzerland’s Ständerat commission reviewed regulatory proposals, with reports suggesting potential dilution of the government’s original plans. UBS had set a new annual high on Friday.
The SMI’s 20 blue-chip constituents showed limited volatility, with no single stock moving more than 1% at midday.
