Nasdaq futures declined while oil prices surged on Monday following reports from Iranian state media indicating that the nation had targeted a U.S. Navy frigate in proximity to the Strait of Hormuz. Futures for the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 indicated declines of 0.5%, 0.1%, and 0.1%, respectively, following a report stating that the frigate “came under missile attack after ignoring warnings from the naval forces of the Islamic Republic of Iran.” Fars further noted that “as a result of these strikes, the US vessel was unable to continue its course and was forced to turn back and flee the area.”
West Texas Intermediate futures, the U.S. crude oil benchmark, experienced a notable increase of 3% to $105 a barrel, whereas front-month contracts of Brent crude, the global benchmark, rose by over 3.5% to approximately $112. Nonetheless, stock futures reduced their losses while oil prices diminished their gains following a report indicating that a senior U.S. official refuted claims of a U.S. ship being hit by Iranian missiles. President Donald Trump stated on Truth Social yesterday that the U.S. would “guide” stranded ships through the strait beginning today. The 10-year Treasury yield, a key determinant of interest rates on mortgages and various consumer loans, increased to 4.41% from 4.38% at the close on Friday. Gold futures experienced a decline of 1.4%, settling at $4,580 per ounce.
Bitcoin was at $79,000, reflecting a modest increase over the past 24 hours. The U.S. dollar index, which monitors the value of the greenback relative to a selection of foreign currencies, experienced an increase of 0.2%, reaching 98.34. On Friday, a rally in technology stocks propelled the S&P 500 and Nasdaq Composite to achieve new intraday and closing highs, marking their fifth consecutive week of gains. The Dow Jones Industrial Average commenced May trading with a modest decline, yet concluded the week on a positive note. Most of the Magnificent Seven tech giants’ shares indicated a downward trend in premarket trading, following a predominantly positive close on Friday, with Apple leading the charge with a gain exceeding 3%.
Shares of eBay soared nearly 10% before the bell after GameStop made a $56 billion bid for the company. GameStop shares experienced a decline of 4.5%. BlackBerry shares experienced a notable increase of 13%, which indicated that its software is currently installed in 275 million cars on the road today. Norwegian Cruise Line Holdings saw its stock decline by 7% following a revision of its full-year profit outlook. Tyson Foods was also set to report earnings before markets open Monday. Palantir Technologies was slated to issue results after the close.