Daily Market Update: US Stock Futures Fall From Record Highs as Oil Prices Rise on Iran Tensions

TLDR

• US stock futures fell Monday, with Dow futures down 0.8% and S&P 500 and Nasdaq 100 contracts dropping around 0.6%
• Oil topped $110 a barrel on Iran tensions, with WTI crude gaining 1.8%
• Bitcoin dropped below $77,000 to its lowest level since May 1, falling 1.5%
• Major altcoins also fell, with Ethereum down 3%, Dogecoin down 5.6%, and Solana down 2%
• Markets are watching Nvidia and Walmart earnings this week, with rate cut hopes fading after hot inflation data

US stock futures pulled back from record highs on Monday morning. Dow futures slipped about 0.8%, while S&P 500 and Nasdaq 100 contracts each fell around 0.6%.

The pullback came after a strong run last week. The S&P 500 and Nasdaq Composite both hit fresh record highs, and the Dow briefly crossed the 50,000 mark for the first time.

The Nasdaq 100 saw its steepest single-day drop since late March, falling 1.5%.

Oil Prices Jump on Iran Tensions

Oil was a major driver of Monday’s market moves. West Texas Intermediate crude climbed 1.8% to trade above $107 a barrel. Brent crude added around 1.1% to top $110.

Reports of drone incidents in the United Arab Emirates and stalled Iran diplomacy pushed prices higher. President Donald Trump warned Sunday that “the clock is ticking” for Iran to reach a deal, or there “won’t be anything left.”

The rise in oil prices fueled inflation fears. That pushed bond prices lower and sent the 10-year Treasury yield to its highest level since early 2025.

Traders have now scaled back expectations for Federal Reserve rate cuts. Futures markets are even pricing in a growing chance of a rate hike later this year.

Bitcoin and Crypto Drop Sharply

Bitcoin fell below $77,000 on Monday, trading at $76,946 as of early morning. That was its lowest level since May 1.

Bitcoin had briefly climbed above $80,000 last week but could not hold that level. Higher bond yields reduced demand for riskier assets like crypto, as safer fixed-income investments became more attractive.

Ethereum fell 3% to $2,122. XRP dropped 1.5% to $1.39. Solana lost 2%, and both Cardano and Polygon fell around 1.5%.

Dogecoin was the hardest hit among major tokens, falling 5.6%.

Despite the selloff, institutional interest in Bitcoin remained steady, with inflows into spot Bitcoin ETFs continuing.

Investors were also cautious ahead of Nvidia’s earnings report scheduled for Wednesday. Nvidia results are expected to influence broader risk sentiment across markets.

Earnings Week Ahead

This week brings several closely watched earnings reports. Nvidia reports Wednesday, alongside Target. Walmart follows on Thursday.

Inflation data released last week came in hotter than expected. That further reduced hopes that the Fed will cut rates anytime soon.

Markets will be watching both earnings and any updates from Iran-US talks closely through the rest of the week.

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