US stock futures have tanked on Wall Street as trading resumed on Sunday evening local time as the Iran-US conflict has translated into a full-blown war across the middle east, leading to a spike in oil prices.
The Dow Jones futures are down 550 points, while those linked to the S&P 500 are down 63 points. Nasdaq futures are down 270 points as well in early trading on Monday.
The escalation of the geopolitical tensions over the weekend have resulted in Crude oil prices also spiking by as much as 12% in early trading before settling with gains of over 8%. Asian markets have also tumbled in trade on Monday morning.
Haven assets have seen a rather subdued response to the escalation with Gold prices and Silver prices in the spot market seeing gains of only up to 2%. This is after the sharp surge that Friday’s session had seen. Gold prices are currently trading around the $5,350 an ounce mark, while Silver prices trade above $95. The US Dollar index is also trading with gains of around 0.3%, nearing levels of 98.
Till the time of writing this, there are no signs of de-escalation of the conflict, with Donald Trump vowing to avenge the death of three US service personnel and Iran continuing to retaliate with attacks across Israel and the Gulf, despite the death of Supreme Leader Khamenei.
US markets had already sold off sharply on Friday, with the Dow Jones declining over 500 points, while the S&P 500 and Nasdaq falling over a percent each, after a hotter-than-expected producer price inflation data. Had the conflict not escalated at the pace at which it has, the biggest development for the upcoming week would have been the jobs report for the month of February, which will be released this Friday.