All three major indexes are indicating a 1% drop or more this morning
Stock futures are starting off March deep in the red, with late-week tech, inflation troubles giving way to Middle East unrest, after the U.S. and Israel attacked Iran over the weekend. The missiles killed Supreme Leader Ayatollah Ali Khamenei, but Iran has vowed retaliation and has threatened to disrupt the Strait of Hormuz, a vital chokepoint for the global economy. Gold prices are up 3% in response, while U.S. crude is 8% higher.
Futures on the Dow Jones Industrial Average (DJI) are eyeing a roughly 500-point drop out of the gate, while Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) futures are also indicating a selloff of 1% or more.
5 Things You Need to Know Today
- The Cboe Options Exchange saw 2.9 million call contracts and roughly 1.9 million put contracts traded on Friday. The single-session equity put/call ratio rose to 0.66, while the 21-day moving average remained at 0.59.
- General Dynamics Corp (NYSE:GD) stock is 2% higher ahead of the open, with defense contractors rising across the board. GD is 42% higher year-over-year, and poised to make a run at its Jan. 16 record high of $369.70 today.
- The shares of Exxon Mobil Corp (NYSE:XOM) are 4.9% higher in electronic trading, with energy conglomerates reaping the benefits of possibly restricted supply through the Strait of Hormuz. BofA Global Research hiked its price target to $151 from $135 as well. XOM is eying a record high today, set to blow past its Feb. 11 peak of $156.93.
- CrowdStrike Holdings Inc (NASDAQ:CRWD) stock looks to be avoiding the pre-market selloff, after Piper Sandler upgraded the cybersecurity name to "overweight" from "neutral" late last night. The analyst in coverage called CRWD “best-in-class." The stock is 20% lower in 2026 heading into today.
- PMI, jobs data defines the first week of March.
Europe Sifting Through It's Own Inflation Data Deluge
Asian markets finished mostly lower, as the U.S.-Iran conflict spread to several sectors. Airlines specifically have taken a significant hit, as the retaliation from Iran triggered the largest disruption in flights since the Covid-19 pandemic. Japan’s Nikkei fell 1.4%, Hong Kong’s Hang Seng shed 2.1%, and China’s Shanghai Composite ticked 0.5% higher. South Korea markets were closed for a holiday.
European stocks are notably lower, as geopolitical conflict continues to drive sentiment. Oil and gas stocks are charging higher alongside European defense stocks, while the travel sector is also taking a notable hit. A handful of earnings reports were overshadowed, while German retail sales saw a much wider-than-expected 0.9% drop. At last check, France’s CAC 40 is down 2%, Germany’s DAX is 2.3% lower, and London’s FTSE 100 has lost 1.4%.