U.S. Stocks Poised for Additional Weakness Following Friday Sell-Off: Dow Jones, S&P, Nasdaq, Wall Street Futures

U.S. stock futures pointed modestly lower on Monday morning, suggesting equities could extend losses after the sharp decline recorded during Friday’s session.

Middle East Tensions Continue to Pressure Sentiment

Investor sentiment remained fragile amid ongoing concerns surrounding the conflict in the Middle East, after President Donald Trump warned Iran that the “clock is ticking.”

In a post published on Truth Social, Trump said Iran “better get moving, FAST, or there won’t be anything left of them,” fueling speculation that the United States could resume military operations.

According to a report from Axios citing two U.S. officials, Trump is expected to gather his senior national security advisers in the Situation Room on Tuesday to review military options.

The ongoing U.S.-Iran conflict has effectively shut down the Strait of Hormuz, a critical global oil shipping route, triggering a surge in crude prices and heightening worries about inflation and interest rate policy.

Treasury Yields and Oil Prices Remain Key Market Drivers

Treasury yields jumped sharply last Friday amid growing speculation that the Federal Reserve’s next interest rate move could potentially be a hike instead of a cut.

However, yields moved slightly lower on Monday morning as crude oil futures retreated, potentially easing some pressure on Wall Street.

Major Indexes Posted Sharp Losses on Friday

After Thursday’s rally, stocks reversed course sharply throughout Friday’s trading session, with all three major indexes closing significantly lower.

Although the indexes recovered somewhat from their intraday lows, losses remained substantial by the closing bell.

The Dow Jones Industrial Average dropped 537.29 points, or 1.1%, to 49,526.17. The Nasdaq Composite fell 410.08 points, or 1.5%, to 26,225.14, while the S&P 500 declined 92.74 points, or 1.2%, to 7,408.50.

Despite Friday’s weakness, the major indexes finished the week relatively unchanged overall. The S&P 500 edged up 0.1%, the Nasdaq slipped 0.1%, and the Dow lost 0.2%.

Technology Stocks Lead Market Decline

The sell-off partly reflected profit-taking after recent market strength pushed both the Nasdaq and S&P 500 to fresh record highs.

Technology shares led much of the decline, with Intel (NASDAQ:INTC) falling 6.6% and Micron Technology (NASDAQ:MU) dropping 6.2%.

Shares of NVIDIA (NASDAQ:NVDA) also declined sharply, falling 4.4%.

At the same time, the benchmark 10-year Treasury yield climbed to its highest level in nearly a year, adding additional pressure on equities.

The rise in yields followed recent economic reports showing significant increases in both consumer and producer inflation, raising concerns about the future direction of Federal Reserve policy.