All three major indexes are indicating a 1.3% drop or more this morning
Stock futures look ready to sell off for real this time. Futures on the Dow Jones Industrial Average (DJI), Nasdaq-100 Index (NDX), and S&P 500 Index (SPX) are all indicating a drop of 1.3% or more this morning, as the conflict with Iran escalates and expands. Yesterday, the Iranian Revolutionary Guard commander announced a blockade of the Strait of Hormuz, sending U.S. crude prices up another 6.8% this morning, while the 10-year Treasury yield was last seen near 4.1%. As indications of a drawn out conflict in the Middle East build, stagflation fears stateside are starting to set in for investors.
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- The Cboe Options Exchange saw 2.2 million call contracts and roughly 1.5 million put contracts traded on Monday. The single-session equity put/call ratio rose to 0.67, while the 21-day moving average remained at 0.59.
- MongoDB Inc (NASDAQ:MDB) stock is 26.9% lower in ahead of the bell, after the software company's fiscal first-quarter earnings and revenue both fell short of estimates. No fewer than 15 price-target cuts are weighing, the worst coming from Mizuho to $290 from $380. MDB was down 22.6% for the year heading into today.
- Target Corp (NYSE:TGT) stock is 4.3% higher before the open, after the retailer reported adjusted fourth-quarter earnings of $2.44 per share, higher than the $2.16 estimates. A hiked fiscal forecast is also driving gains. Target stock is 15.8% higher in 2026, set to break out of a month-long consolidation pattern.
- The shares of On Holding AG (NYSE:ONON) are 14.2% lower in electronic trading, after the Swiss-based sneaker giant's 2026 guidance fell short of estimates. ONON was holding its year-to-date breakeven level, but is now poised to be down more than 20% year-over-year.
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Euro Zone Data Not Enough to Assuage Middle East Tensions
Asian markets suffered steep losses across the board, as crude prices continued to climb. South Korea’s Kospi fell 7.2%, logging its worst day in nearly two years as Samsung Electronics and SK Hynix dragged tech. Hong Kong’s Hang Seng lost 1.1%, while Japan’s Nikkei fell 3.1%, and China’s Shanghai Composite shed 1.4%.
Sentiment has worsened in Europe as well, with travel and leisure names taking a hit. The European Union (EU) demanded de-escalation alongside “maximum restraint,” while investors brushed off euro zone inflation data that climbed 1.9% for February, below estimates of 2%. Natural gas in Europe is also spiking, after Iran knocked out Qatar’s LNG production. At last check, London’s FTSE 100 is down 2.6%, France’s CAC 40 is off 2.7%, and Germany’s DAX is leading losses with a 3.3% drop.