Stock futures plunged and crude oil surged on Monday amid escalating tensions involving Iran, triggering widespread risk-off sentiment. The move underscores growing fears of supply disruptions and broader regional instability.
- S&P 500 futures down 2.1%, Nasdaq 100 futures down 2.5%
- VIX index surges 14% to 27.8
- Brent crude futures up 6.3% to $94.20/bbl
- WTI crude futures up 6.8% to $90.15/bbl
- Raytheon and Lockheed Martin up 5.7% and 4.8% pre-market
- Apple (AAPL) futures down 2.3% amid tech selloff
Global equity futures dropped sharply in early trading, with the S&P 500 futures falling 2.1% and the Nasdaq 100 futures declining 2.5% as regional hostilities intensified. The VIX index, a key measure of market volatility, jumped 14% to 27.8, reflecting heightened investor anxiety. The developments followed unconfirmed reports of military strikes near Iran’s nuclear facilities, prompting immediate reassessments of global supply chains and energy security. Crude oil prices surged, with Brent crude futures climbing 6.3% to $94.20 per barrel and U.S. West Texas Intermediate (WTI) futures rising 6.8% to $90.15. The spike marks the largest single-day gain since late 2023 and reflects concerns over potential disruption to oil flows from the Strait of Hormuz. Energy stocks, including major integrated producers, saw immediate gains, with ExxonMobil and Chevron up 4.2% and 3.9% respectively in pre-market trading. The defense sector also reacted strongly, as stocks of defense contractors such as Raytheon Technologies and Lockheed Martin rose 5.7% and 4.8%. These gains highlight investor expectations of increased military spending and a potential pivot toward defense readiness in response to regional instability. Meanwhile, technology stocks bore the brunt of the selloff, with Apple (AAPL) futures down 2.3%, reflecting broader risk aversion among growth-oriented equities. Market participants are now closely monitoring diplomatic channels and U.S. military posture. The energy and defense sectors are likely to remain under pressure until clarity emerges on the scope and duration of the conflict. The current volatility could persist into the regular trading session, with oil and equities likely to remain sensitive to further developments in the Middle East.