U.S. Futures Slide After Iran Strikes; Fed Outlook, PMI Data in Focus
Summary
U.S. stock futures slid Sunday evening following U.S. airstrikes on Iran's nuclear facilities, intensifying geopolitical concerns and prompting investor caution. S&P 500, Nasdaq 100, and Dow Jones futures all dipped. Markets are also bracing for preliminary June PMI data and Federal Reserve Chair Jerome Powell's congressional testimony, which will offer insights into economic activity and interest rate policy after the Fed recently held rates steady and trimmed its 2026 rate-cut outlook.
U.S. Futures Slide Amid Geopolitical Tensions; Fed Outlook and PMI Data in Focus
U.S. stock index futures experienced a notable dip Sunday evening as investors reacted to escalating geopolitical risks following confirmed U.S. airstrikes on Iran's nuclear facilities over the weekend. The action, announced by President Donald Trump, has significantly heightened concerns of a broader conflict in the Middle East, especially after Tehran's vow of "everlasting consequences."
Futures React to Escalation
Market indicators reflected immediate investor caution:
- S&P 500 Futures: Declined 0.3% to 5,997.0
- Nasdaq 100 Futures: Fell 0.5% to 21,746.5
- Dow Jones Futures: Dropped 0.3% to 42,376.0
In response to the geopolitical developments, oil prices saw a brief surge. Equities, however, reflected a more cautious sentiment, anticipating potential Iranian retaliation, including reports of a plan to disrupt shipping through the Strait of Hormuz, a critical global energy conduit.
Macro Data and Fed Testimony Ahead
Beyond the immediate geopolitical concerns, markets are also preparing for key economic data releases and central bank commentary this week:
- Preliminary PMI data for June: Scheduled for release on Monday, this data is widely anticipated to indicate a slowdown in business activity.
- Jerome Powell's Congressional Testimony: Federal Reserve Chair Jerome Powell is set to deliver two days of testimony to Congress, commencing Tuesday. His remarks will be closely scrutinized for further insights into the Federal Reserve's stance on interest rates and the trajectory of inflation.
Last week, the Federal Reserve opted to hold interest rates steady. Furthermore, the central bank adjusted its outlook for rate cuts in 2026, trimming expectations due to persistent inflation and uncertainties stemming from tariff-related issues.
Follow Fed Projections and Macro Trends
Investors can monitor the impact of Federal Reserve rate forecasts and broader macroeconomic indicators on equity valuations. Tools like the Key Metrics (TTM) API provide real-time financial metrics, including forward P/E ratios, interest coverage ratios, and debt trends for S&P 500 components and other securities, offering valuable insights into market dynamics.