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US stock futures retreated early Monday as a weekend surge in US-Iran tensions dashed hopes for a lasting Middle East peace deal, sending oil prices sharply higher and rattling investor confidence heading into a pivotal week of earnings.

Dow Jones futures dropped 0.70%, while contracts on the S&P 500 and the Nasdaq 100 each fell roughly 0.6% in early trading Monday.

The pullback comes after a winning week for Wall Street, with the S&P 500 and Nasdaq Composite climbing to all-time highs last week on the back of ceasefire optimism and the reopening of the Strait of Hormuz.

The weekend brought a sharp reversal. Iran had declared the Strait of Hormuz reopened, but by Saturday, vessel traffic through the key shipping lane was restricted again, with state media saying the US “did not fulfill their obligations.” Trump warned Sunday he would “knock out every single Power Plant, and every single Bridge, in Iran” if Tehran did not agree to Washington’s terms to end the conflict, with the fragile ceasefire set to expire this week.

Oil prices soared over 6% on Monday in response, though they remained below the key $100 level. U.S. benchmark West Texas Intermediate crude futures traded at around $88 per barrel, while global benchmark Brent crude changed hands just above $96.

This week brings a heavy slate of corporate earnings that could set the tone for broader markets. Earnings season accelerates from April 20 to 24, with key names including Tesla (NASDAQ:TSLA), Intel (NASDAQ:INTC), UnitedHealth Group (NYSE:UNH), and GE Aerospace (NYSE:GE) reporting results that could influence market sentiment across tech, healthcare, and industrials.

Meanwhile, the 10-year Treasury bond yielded 4.274%, and the two-year bond was at 3.741%. The CME Group’s FedWatch tool‘s projections show markets pricing a 99.5% likelihood of the Federal Reserve leaving the current interest rates unchanged in its April meeting.

The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ) were both lower in premarket trading. The SPY was down 0.61% at $710.14, while the QQQ lost 0.67% to $648.85.

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Transcript
00:08all right futures are under pressure ahead of monday's open here but as mentioned they are
00:15up off of the overnight lows here s&p futures down 0.42 percent dow futures down 0.46 percent
00:22and the nasdaq also down 0.42 percent all right let's check in on some cues from last session
00:32shall we on friday major indexes built on earlier gains and closed out their third consecutive
00:40higher week boosted by news that iran declared the straits of hormuz completely open to commercial
00:44traffic dow jones jumped about 2.2 percent and the s&p gained 1.4 percent while the nasdaq also
00:51posted
00:51some solid gains the week's flows went primarily into financial discretionary and tech stocks all
00:57of which lagged through much of march some of those are down here in the pre-market um now starting
01:05with this week u.s stock futures retreated early monday as weekend surge in u.s iran tensions
01:11dashed hopes for a lasting middle east peace deal that sent oil prices sharply higher and rattles
01:16investors confidence heading into a pivotal week of earnings which is really the big story for this
01:21week dow jones futures dropped seven tenths while contracts on the s&p 500 and the nasdaq each fell
01:27six tenths in early trading monday again they're down just about four tenths now so we are up off of
01:33those lows the pullback comes after a winning week for wall street the s&p 500 and nasdaq climbing to
01:40all-time highs last week on the back of the ceasefire optimism and the reopening of the strait of
01:45hormuz the weekend brought a sharp reversal iran had declared the strait of hormuz reopened but by
01:52saturday vessel traffic through the key shipping lane was restricted again state media saying the
01:58u.s quote did not fulfill their obligations end quote trump warned on sunday he would quote knock out
02:04every single power plant and every single bridge if i ran uh in iran excuse me end quote if tehran
02:12did
02:12not agree to washington's terms to end the conflict with a fragile ceasefire set to expire this week
02:17more volatility on deck as a result oil prices surged over six percent on monday in response though
02:23they remain below the key 100 level u.s benchmark west texas intermediate crude futures traded around
02:2988 per barrel while global benchmark brent crude changed hands at above 96 dollars
02:36this week brings a heavy slate of corporate earnings that could set the tone for broader markets
02:41earnings season accelerates from april 20th today to april 24th with key names that include the likes
02:48of tesla ticker t-s-l-a intel ticker intc united health group ticker unh and ge aerospace ticker ge
02:57they're reporting results that could influence the markets across tech health care and industrials
03:04meanwhile the 10-year treasury bond yielded 4.274 and the two-year bond was at 3.741 the cme
03:13group's
03:13fed watch tool projection showed that the market is pricing at a 99.5 likelihood of the federal
03:18reserve leaving the current interest rates unchanged in its april meeting there is no economic data
03:25scheduled for monday however the week ahead is packed with market moving events the senate banking
03:31committee excuse me the senate banking committee has scheduled a confirmation hearing at 10 a.m eastern
03:36on tuesday tomorrow april 21st for kevin warsh president trump's nominee for the federal reserve
03:42chair thursday april 23rd that brings the weekly jobless claims report friday april 24th closes the
03:50week with the university of michigan's final consumer sentiment index reading for april new york fed
03:55staff nowcast is also due on friday and just as mentioned here with uh with oil here wti crude
04:02futures did surge approximately seven percent to around 88.36 per barrel brent crude traded above 96
04:08per barrel gold futures slipped 1.36 to 4 813 per ounce and bitcoin was trading around 74 800 down
04:16about
04:170.65 over the past 24 hours european stocks fell broadly on monday with the pan european stock uh
04:25stocks 600 down nine tenths in early trade the german dax fell 1.3 percent and the french cac 40
04:31dropped about 1.1 percent and the footsie 100 opened four tenths lower with most sectors in negative
04:37territory asia pacific markets were mostly higher overnight though u.s futures erased those gains as
04:44the tensions escalated
04:46the tensions escalated
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