Wall Street futures slip as US-Iran tensions escalate
U.S. stock futures fell on Monday as Tehran vowed retaliation for American airstrikes on its nuclear facilities over the weekend, sparking fears of a broader conflict in the Middle East.
Tehran warned that the U.S. attack had expanded the scope of its military action.
Oil prices jumped in a volatile session amid rising concerns around Iran shutting the Strait of Hormuz, a key oil supply route. Brent futures were up 1.2% at $77.91 a barrel as of 07:22 a.m. ET.
Energy stocks rose in premarket trading, tracking a surge in crude prices. Shares of energy majors Chevron rose 1.5% and Exxon gained 1.9%.
Defense stocks also rose, with Lockheed Martin up 0.5% and RTX Corporation gaining 1.1%.
"There is tension but not trauma as investors monitor developments in the Middle East," Richard Hunter, head of markets at Interactive Investor, said in a note.
As markets grapple with existing price pressures from President Donald Trump's tariffs, the oil price volatility added a new layer of inflation concerns as the 90-day suspension for U.S. tariffs nears.
At 07:43 a.m. ET, Dow E-minis were down 98 points, or 0.23%, S&P 500 E-minis were down 10.25 points, or 0.17%, and Nasdaq 100 E-minis were down 45.75 points, or 0.21%
Among other movers, Tesla rose 0.5% after the EV-maker deployed 10 self-driving taxis in Texas, marking the first time Tesla cars without human drivers carried paying riders.
Shares of U.S. carriers were mostly down, with Delta Air Lines falling 1.1%, and American Airlines losing 1.3%
Shares of Estée Lauder added 2.3% in premarket after Brokerage Deutsche Bank upgraded the cosmetic giant to "buy" from "hold".
Following a strong rally in equities last month that pushed indexes close to their record levels, investor momentum was bruised by rising geopolitical tensions.
The benchmark S&P 500 index remains about 3% below its record level.
Among major economic indicators, attention will be on U.S. core PCE data and final GDP reading, set to be released later in the week.
Investors will also closely watch U.S. Federal Reserve Chair Jerome Powell's two-day semiannual testimony before Congress, as lawmakers are expected to question the top policymaker on a range of topics, including interest rates and tariffs.
This comes after the central bank kept interest rates unchanged in its June monetary policy meeting but flagged inflationary risks due to higher trade duties.
In earnings, investors were awaiting fourth-quarter results from sportswear giant Nike and parcel delivery giant FedEx, both scheduled to be released later in the week.
Preliminary June PMI data is due at 09:45 a.m. ET and existing home sales data for May is scheduled for release at 10:00 a.m. ET.
Fed Board Governor Christopher Waller, Fed Chicago President Austan Goolsbee and Fed San Francisco President Mary Daly are slated to speak later in the day.
(Reporting by Kanchana Chakravarty and Nikhil Sharma in Bengaluru; Editing by Rashmi Aich and Pooja Desai)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Khaleej Times
an hour ago
- Khaleej Times
Abu Dhabi University rises 110 places in QS World University Rankings 2026
Abu Dhabi University (ADU) has climbed 110 places to secure a global position of 391, earning a spot among the top 400 universities worldwide, according to the Quacquarelli Symonds (QS) World University Rankings 2026. The leap highlights the capital's commitment to the continued delivery of globally competitive academic programs and innovative research, reinforcing its position as a leading institution in higher education. Regionally, ADU has advanced to fifth place among 12 UAE-based higher education institutions, up two positions from the previous year. The results follow enhanced data validation techniques introduced by QS, designed to elevate data quality and improve the reliability of reputation measures across institutions. The university's progress is reflected across several key indicators, with notable improvements in employer reputation, academic reputation, and citations per faculty, underscoring its expanding influence in research, thought leadership, and graduate employability. Professor Ghassan Aouad, Chancellor of Abu Dhabi University, said, 'This consistent rise in the QS World University Rankings reflects the steady momentum we have built over the years through a clear strategic vision and purposeful academic investment. Year after year, we continue to climb the global rankings, driven by a commitment to excellence in teaching, impactful research, and international collaboration. We are proud to be among the top 400 universities globally, an affirmation of the quality of our programs and their alignment with international standards. We remain committed to nurturing the next generation of leaders who will thrive, innovate, and contribute to the UAE's national agenda and beyond, across diverse sectors.' He added, 'As we mark this achievement, I extend my sincere gratitude to our students, faculty, researchers, and staff whose dedication has made this milestone possible.' Professor's innovation earns patent Meanwhile, in a step toward sustainability and scientific innovation, Dr Rahaf Ajaj, Chair of the Department of Environmental and Public Health at Abu Dhabi University's (ADU) College of Health Sciences, has been awarded a German utility model patent for her pioneering research into biodegradable polymeric films. This achievement further points at the ADU's commitment to driving impactful research with real-world applications that benefit both the environment and student learning. Granted by the German Patent and Trade Mark Office (DPMA), the utility model titled 'Composition of polymer films based on pectin containing a boswellic acid derivative for improved functionality' represents a breakthrough in active packaging materials. Developed in collaboration with an international team of scientists, the innovation combines pectin, a natural plant-based polymer, with a specially synthesised compound derived from boswellic acid, resulting in enhanced antioxidant activity and improved water resistance. Ajaj said: 'This patent reflects years of applied research aimed at replacing harmful plastics with sustainable alternatives. With the support of Abu Dhabi University, I am proud to see our work recognised on an international stage. By synthesising a novel bioactive compound and integrating it into pectin-based films, we've created a material that delivers both environmental and functional value. This milestone reflects our mission to develop sustainable alternatives to traditional plastics and contribute to a circular economy. It also enhances opportunities for ADU students, who are involved in applied research that prepares them to be changemakers in environmental science, healthcare, and beyond.'
Khaleej Times
2 hours ago
- Khaleej Times
'We have no choice': UAE motorists call for reforms, audits as car insurance rates spike
Motorists across the UAE are reporting significant spikes in car insurance premiums this year, with some facing renewal rates up to 40 per cent higher than the previous year, prompting fresh calls for more oversight and transparency from insurers. The complaints come in the wake of a Federal National Council (FNC) session earlier this month in which a member of the council questioned the Central Bank of the UAE on whether reforms were needed to regulate the sudden rise in insurance premiums. Ibrahim Mohammed, a Sharjah resident originally from India, said his premium jumped by 30 per cent this year, even though he received nearly identical quotes from different providers. 'Almost all companies listed in online insurance portals provide the same market price,' said the 37-year-old warehouse cashier. CS, a South African resident and senior production accounts manager, experienced a 40 per cent increase in April while renewing insurance for his new Genesis. Stay up to date with the latest news. Follow KT on WhatsApp Channels. 'When I asked for the reason behind the increase, I was told it was due to the US tariffs against China,' he said. 'But I haven't made any claims, so that made no sense to me.' He was told that tariffs could affect the cost of spare parts in the event of a future claim. 'They can't charge me 40 per cent more for imports if I have no claims yet,' he said, calling it unfair and misleading. 'Now that the tariffs are settled, we won't get the 40 per cent back.' CS added that motorists had no real recourse due to mandatory insurance renewal laws. 'So, you have no option but to accept even if an excuse like political tariffs seems false and invalid,' he said, calling for audits and stricter regulations. Losses from floods and Covid discounts behind spike Insurance industry leaders point to a mix of economic, regulatory and climate-related factors for the price hikes — particularly the aftermath of the record-breaking rainfall that swept UAE in May 2024. 'Car insurers faced major losses due to the floods. It's true it was a rare incident, but the impact on claims was unprecedented, ' said Ahmad Al Tahat, a car insurance manager in Abu Dhabi. He noted that prices had also dropped sharply during the Covid-19 pandemic, with discounts reaching up to 50 per cent, and only began returning to standard levels by 2022, in line with Central Bank directives. For example, insuring a new Toyota Land Cruiser during the pandemic through its agency cost just 1.8 per cent of its value. Today, the same policy is around 2.6 per cent, while non-agency cover rose from 1.4 per cent to 2.1 per cent. Electric and Chinese vehicles were also costlier to insure due to the lack of authorised workshops and spare parts. However, Al Tahat noted that these cars are becoming easier and more affordable to insure. 'Spare parts were the main challenge, but now they've become more available,' he said. According to Hadi El Halabi, senior manager of Motor Underwriting at Hadi Car Insurance, a series of systemic pressures have converged to raise rates. 'Premiums rose due to the rising cost of vehicle repairs, economic inflation, new insurance regulations, more accidents, and an increase in fraudulent claims,' El Halabi explained. He broke down average premium shifts over recent years for non-agency policies: El Halabi explained that historically, premiums for Chinese and electric vehicles were higher due to limited data for risk assessment, expensive parts, and fewer authorised repair facilities, especially for EV batteries. 'But things are improving significantly,' he said, noting a shift as these models become more mainstream and reliable. While insurers have pricing flexibility, they must operate within actuarial models approved by the Central Bank of the UAE, which monitors solvency and fair competition. 'Some insurers hiked premiums more aggressively,' said El Halabi, pointing to Central Bank reforms that removed Covid-era discounts and reintroduced minimum pricing thresholds. Today, minimum comprehensive cover for saloon cars is Dh1,300, and third-party cover starts at Dh750. Consumers, meanwhile, are changing their habits. 'People are more price‑conscious, cutting coverage, avoiding agency repairs, and shopping through aggregators,' El Halabi said. Asked whether insurance costs might ease in the near future, El Halabi was cautiously optimistic. 'Premiums for electric vehicles are likely to stabilise, or even decrease, in 2025 as repair networks improve and competition grows.' For motorists like CS and Ibrahim, however, the issue remains one of accountability. 'Point still stands that I'm paying a premium on repairs I haven't claimed,' CS said. 'The excuse of an increase is not a good enough reason to raise the cost by 25 to 40 per cent. I hope there can be an audit done or more regulations put in place.'
Zawya
2 hours ago
- Zawya
Tesla shares soar after first robotaxi rides hit the road in Austin, Texas
Tesla shares jumped 10% on Monday, lifted by the long-awaited launch of the company's robotaxi service that CEO Elon Musk has for years championed as a key driver of the electric vehicle maker's lofty valuation. The automaker deployed a small fleet of self-driving taxis in Austin, Texas, on Sunday, marking the first time its cars have carried paying passengers without human drivers. The rides were being offered for a flat fee of $4.20 in a limited zone. The trial's success is crucial for Tesla as Musk has pivoted the company to self-driving cars and robots, shelving plans for mass-market dominance in the EV space as Chinese competition heats up and demand slows for its aging line-up of models. "It was a comfortable, safe, and personalized experience," said Wedbush Securities analyst Dan Ives, who took multiple robotaxi rides on Sunday and has long been a Tesla bull. "There was a moment where we drove up a narrow road going up a hill with cars parked on both sides with oncoming traffic and people opening their car doors into the road and the robotaxi masterfully maneuvered with patience and safety." Many social-media influencers also posted videos of their first rides on X, showing the cars navigating busy city streets by slowing down and making room for incoming traffic. Still, the tightly controlled trial - with about 10 vehicles and front-seat riders acting as "safety monitors" - is just the first step in what could be a years-long process of scaling up the service, according to some industry experts. Tesla, as well as rivals including Google-backed Waymo, have faced federal investigations and recalls following collisions. Industry experts have questioned the efficacy of Tesla's self-driving technology that depends mostly on cameras and AI, without redundant sensors such as lidar and radar, claiming fog, heavy rain and glaring sunlight can hamper safety. The company will also have to navigate a new Texas law taking effect September 1 that requires a state permit for self-driving vehicles and reflects bipartisan calls for a cautious roll-out.
