Stock market futures are uncertain following President Trump’s airstrikes on Iranian nuclear sites, affecting investor sentiment. The S&P 500 has shown mixed results, with a further decline noted on Friday. Fed Chair Powell reinforces a cautious stance on interest rates, while Trump intensifies rhetoric against Powell. Meanwhile, Tesla’s robotaxi service launches soon, potentially impacting Uber.
Stock market futures are feeling the pressure after President Trump ordered airstrikes on three Iranian nuclear facilities, significantly escalating tensions in the Middle East. With the Dow Jones, S&P 500, and Nasdaq futures set to open on Sunday evening, analysts are worried that tariffs and this newfound conflict might overshadow recent gains in the stock market after a promising June.
The stock market’s performance has been somewhat mixed in recent days, having shown resilience amidst troubling developments regarding Iran and Israel. Notable stocks like Viking (VIK), Dell (DELL), Super Micro (SMCI), and Shake Shack (SHAK) are currently hitting their buy zones, despite the turmoil. However, on Friday, the S&P 500 fell 0.22%, marking its third consecutive day of losses and closing the session at 5,967.84.
As markets brace for the latest from the Middle East, Tesla is about to launch its much-anticipated robotaxi service in Austin, Texas, on Sunday. This service includes a “safety monitor” in each passenger seat—a cautious move that could affect existing companies like Uber Technologies (UBER), which is gearing up for a more aggressive market strategy of its own.
In an important economic update, Fed Chair Jerome Powell remarked on Wednesday that the Federal Reserve would not rush to lower benchmark interest rates, emphasizing the need to rely on data amid uncertainty surrounding Trump’s tariffs. As a result of Powell’s comments, the S&P 500 saw a slight dip, reflecting investor sentiment.
During an exchange earlier this week, President Trump lashed out at Powell, accusing him of costing the United States “hundreds of billions of dollars” by delaying potential rate cuts. Trump also expressed skepticism, suggesting Powell “probably won’t cut rates” before the Fed’s decision set for this coming Wednesday.
Late Saturday night, Trump took to Truth Social to announce the successful bombing of Iranian nuclear sites, which included locations like Fordow, Natanz, and Esfahan. His post stated, “NOW IS THE TIME FOR PEACE” following the strikes. Armed with B-2 stealth bombers, the mission aimed to destroy Iran’s nuclear enrichment capabilities, a concern given the nation’s status as a state sponsor of terror.
Reflecting on the impact of geopolitics on the stock market, Sam Stovall, chief investment strategist at CFRA Research, noted earlier in the week that the S&P 500 trades roughly 3% below its 52-week high. He added, “If there’s a calming down of the geopolitical activities, then you know that could be helpful,” suggesting that stability could benefit investors.