Dow, S&P 500, Nasdaq Futures Slip As Middle East Tensions Escalate Again: PLTR, ARBB, SKK, XNDU Stocks In Focus

• Dow Jones futures were flat overnight at the time of writing, while the S&P 500 futures were down 0.06% and Nasdaq 100 futures edged 0.09% lower.
• Earnings from notable players like Palantir Technologies, Paramount Skydance, and Transocean also affected markets, though they were eclipsed by the conflict. 
• Oil futures were edging lower in Monday’s overnight session but stayed above the $100 mark.

U.S. stock futures fell marginally in Monday’s overnight trading session as an escalation of tensions between the U.S. and Iran overshadowed optimism from strong quarterly earnings results on Wall Street.

Dow Jones futures fell about 0.01% at the time of writing, while the S&P 500 futures were down 0.06% and Nasdaq 100 futures edged 0.09% lower as of 8.26 p.m ET.  

Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY) and Invesco QQQ Trust (QQQ) declined in after-hours trading, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) was climbing higher. Meanwhile, retail sentiment on Stocktwits for three indexes was green.

How Did US Markets Fare?

On Monday, the Dow Jones Industrial Average fell 1.13% to close at 48,941.90. The S&P 500 slid 0.41%, while the Nasdaq Composite shed more than 46 points to close 0.19% lower.

US Market Drivers

U.S. stock markets retreated from record highs, slipping into red territory as reports of resumed tensions between Washington and the Middle East in the Strait of Hormuz weighed on sentiment.

President Donald Trump said in a post on Truth Social that Iran had “taken some shots” in the Strait related to the ‘Project Freedom.’ Trump had said last week that the US would help trapped ships leave the critical strait starting Monday.

“Iran has taken some shots at unrelated Nations with respect to the Ship Movement, PROJECT FREEDOM, including a South Korean Cargo Ship. Perhaps it’s time for South Korea to come and join the mission! We’ve shot down seven small Boats or, as they like to call them, “fast” Boats. It’s all they have left. Other than the South Korean Ship, there has been, at this moment, no damage going through the Strait,” Trump said.

Meanwhile, the United Arab Emirates also reportedly intercepted Iranian missiles, the first since the start of the ceasefire nearly a month ago. Reports of missile strikes on a U.S. frigate in the waterways also emerged. Iran has maintained that any U.S. intervention in the Strait would receive a “decisive and crushing response.”

Earnings from notable players like Palantir Technologies, Paramount Skydance, and Transocean also impacted markets, although their impact was eclipsed by the conflict in the Middle East.

Trending Stocks To Watch

Palantir Technologies Inc. (PLTR): Shares of the defense company slipped more than 2% in overnight trading despite strong quarterly results and solid guidance as valuation concerns weighed heavily on investor sentiment.

ARB IOT Group Ltd. (ARBB): The Singapore-based Internet of Things (IoT) solutions company extended a third consecutive session to green, ending more than 23% higher on Monday as investors actively discussed its low float and short-squeeze potential.

SKK Holdings Ltd. (SKK): Shares of the company pared some gains post-market after jumping more than 700% on Monday amid the announcement that it would acquire Texas-based Rantizo’s drone assets for agriculture, forestry, emergency response, and commercial applications.

Xanadu Quantum Technologies Ltd. (XNDU): The quantum computing firm’s stock declined sharply, ending about 61% lower on Monday as a new share listing weighed heavily on investor sentiment.

Broader Market Trends

Oil futures were edging lower in Monday’s overnight session but stayed above the $100 mark. Brent crude futures expiring in July were down about 0.51%, trading at around $113.86 a barrel, while WTI crude futures expiring in June were down 1.31% to $105.03 a barrel at the time of writing.

Treasury yields on the benchmark 10-year were at 4.432%, while gold traded around $4,516.28 an ounce.

Markets in Japan, South Korea, and mainland China are closed on Tuesday. Meanwhile, Australian stock markets were down at the open.

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