Dow futures slip as geopolitical risks overshadow last week’s rally

Stocks are looking a bit shaky out of the gate Monday, as rising geopolitical tensions in the Strait of Hormuz keep investors on edge despite last week’s strong finish. Dow futures are down about 0.4%, while S&P 500 futures are slipping modestly and Nasdaq futures are hovering near flat.

Oil is the big story early on. Prices swung sharply overnight, with Brent crude briefly jumping more than 5% above $114 a barrel as concerns flared over potential disruptions in one of the world’s most critical shipping routes. Conflicting reports around military activity in the region and tough rhetoric between the US and Iran are adding to the uncertainty, leaving traders bracing for more volatility.

At the same time, there’s still a sense that the broader market is trying to hold its footing. “The new week kicks off on optimism – not that the Iranian war is coming to an end, and to be honest I try to look past the headlines as US leaders’ statements sound nothing more compelling than cheap propaganda – but on optimism that AI continues to mask the pain elsewhere,” Swissquote analyst Ipek Ozkardeskaya commented.

On the corporate side, there’s no shortage of headlines. Spirit Airlines has officially shut down operations after bailout talks fell through, while eBay shares are moving higher on a headline-grabbing takeover pitch involving GameStop. Bitcoin is also back in the spotlight, climbing above $80,000 for the first time since January.

Looking ahead, earnings season rolls on with chipmakers like AMD and Arm in focus, alongside Palantir set to report after the bell, giving investors another key test for the market’s AI-fueled momentum.