U.S. stock futures fell on Monday as oil prices surged after President Donald Trump announced a blockade of the Strait of Hormuz, with peace talks between the U.S. and Iran over the weekend ending without a deal.
Dow Jones Industrial Average futures were down 500 points, or 1%. S&P 500 futures shed 0.6% along with Nasdaq-100 futures.
Goldman Sachs was a sore spot in premarket trading. Shares were down 4% despite the bank’s strong overall earnings after it recorded disappointing trading results in its fixed income unit.
“Effective immediately, the United States Navy, the Finest in the World, will begin the process of BLOCKADING any and all Ships trying to enter, or leave, the Strait of Hormuz,” Trump wrote on Truth Social. “The Blockade will begin shortly. Other Countries will be involved with this Blockade. Iran will not be allowed to profit off this Illegal Act of EXTORTION.”
The breakdown of negotiations in Islamabad reignited worries that the Iran war will last longer than feared, leading to higher oil prices that will continue to strain economies worldwide.
West Texas Intermediate crude oil jumped 7% to above $104 per barrel. International Brent popped 7% to above $102 a barrel.
U.S. Central Command said it will begin blocking all maritime traffic in and out of Iran’s ports at 10 a.m. ET Monday. The U.S. said it will not block vessels using the strait to get to non-Iranian ports.
Vice President JD Vance left Islamabad without a deal with his Iranian counterparts, citing their unwillingness to stop the pursuit of nuclear weapons. But both sides appear farther apart than just that issue, with Iran demanding control of the Strait of Hormuz, war reparations and the release of frozen assets. Pakistan officials said they would try to restart talks in the coming days.
Trump, who announced the naval blockade after talks broke down, is weighing resuming military strikes, the Wall Street Journal reported, citing officials familiar with the situation.
“Investors are now back to the drawing board trying to reassess the fair value of stocks now that it’s clear that there is no end in sight to the conflict in the Middle East,” said Clark Bellin, president and chief investment officer at Bellwether Wealth. “The Strait of Hormuz is key for oil prices and overall market sentiment, and it’s clear that there will be more saber rattling over this waterway between the U.S. and Iran this week.”
Hopes for a swift end to the war helped all three major benchmarks post their best week since November, following the announcement of a two-week ceasefire between the U.S. and Iran. The S&P 500 rallied 3.6% last week, while the Nasdaq jumped about 4.7%. The Dow gained 3%.
First-quarter earnings season unofficially kicks off this week. The nation’s largest banks will get it started, with Goldman Sachs slated to release results on Monday. Citigroup, Wells Fargo, JPMorgan Chase, Morgan Stanley and Bank of America are all on the docket later this week.
Revolution Medicines says pancreatic cancer drug passes key test
Revolution Medicines reported Monday that its drug for pancreatic cancer had passed a key late-stage trial, opening up potential new treatment for the deadly disease and sending shares soaring.
The said a daily pill called daraxonrasib met all requirements in the Stage 3 trail. People who took the medication lived for 13.2 months, more than double those on chemotherapy.
“These are dramatic, practice-changing outcomes, and our focus now is moving quickly to bring this potential new treatment option to patients who urgently need new treatment,” RevMed CEO Mark Goldsmith said in an interview.
Shares of Revolution surged 71% in premarket trading.
— Jeff Cox and Angelica Peebles
Williams-Sonoma, Best Buy, Fastenal among the names making moves before the bell.
Check out the companies making the biggest moves premarket:
- Williams-Sonoma — The kitchen and cookware retailer gained more than 2% after getting an upgrade to buy at Goldman Sachs. Analysts at the bank said the stock is trading at attractive levels, adding Williams-Sonoma has “one of the strongest portfolio of brands in retail.”
- Best Buy — Goldman Sachs downgraded the electronics and appliances retailer to sell at Goldman, sending shares down 4%. “While Best Buy will likely see a benefit to [same-store sales] from a pull-forward of PC demand and higher tax returns in Q1, we think there will be risk to sales post Q1 as higher memory costs start to work their way into the price of laptops and computers,” Goldman analysts wrote.
- Fastenal — The industrial and construction supply distributor slid more than 4% after it reported first-quarter earnings that met the Street’s expectations. Fastenal reported 30 cents in earnings per share and $2.2 billion in revenue, meeting the consensus of analysts polled by FactSet.
Read the full list here.
— Davis Giangiulio
Goldman Sachs shares drop despite bank’s quarterly results topping estimates
Shares of Goldman Sachs fell more than 3% in premarket trading on Monday, even after the bank’s first-quarter earnings and revenue topped Wall Street’s expectations.
The bank earned $17.55 per share on revenue of $17.23 billion for the period, while analysts surveyed by LSEG had estimated $16.49 in earnings per share and $16.97 billion in revenue.
However, trading in the bank’s fixed income, currencies and commodities unit came in at $4.01 billion. That was far below the $4.92 billion for FICC trading that analysts polled by FactSet had penciled in.
— Hugh Son and Sean Conlon
Goldman Sachs upgrades Williams-Sonoma
The kitchen and cookware retailer gained more than 2% after getting an upgrade to buy at Goldman Sachs. Analysts at the bank said the stock is trading at attractive levels, adding Williams-Sonoma has “one of the strongest portfolio of brands in retail.”
— Fred Imbert
Best Buy falls on Goldman downgrade
Goldman Sachs downgraded Best Buy to sell at Goldman, sending the electronics retailer down nearly 4% in the premarket.
“While Best Buy will likely see a benefit to [same-store sales] from a pull-forward of PC demand and higher tax returns in Q1, we think there will be risk to sales post Q1 as higher memory costs start to work their way into the price of laptops and computers,” Goldman analysts wrote.
— Fred Imbert
Asia markets close mostly lower as U.S. set to blockade Iran shipments
Asia-Pacific markets fell Monday, as the U.S. announced a naval blockade against Iranian shipments after Washington and Tehran failed to reach an agreement to end the conflict in the Middle East.
The breakdown of negotiations over the weekend in Islamabad reignited concerns that the U.S.-Iran war could last longer than feared, leading to higher oil prices that continue to strain economies worldwide.
Japan’s Nikkei 225 ended Monday’s session 0.74% lower, while the Topix declined 0.45%. South Korea’s Kospi closed the session 0.86% lower at 5,808.62, though the small-cap Kosdaq gained 0.57% to 1,099.84 in choppy trade. The S&P/ASX 200 fell 0.39% to 8,926.
Mainland China’s CSI300 index ended the session 0.21% higher, while Hong Kong’s Hang Seng index was 1.01% lower in afternoon trade.
India’s Nifty 50 and the BSE Sensex were last down about 1%.
Crude oil prices surged on Sunday after the talks ended without an agreement and the U.S. moved toward a blockade of Iranian port traffic. The West Texas Intermediate jumped 7.07% to $103.40 per barrel as of 03:34 a.m. ET. Brent crude gained 6.79% to $101.67 per barrel.
— Justina Lee
Asia markets decline after U.S. moves to blockade Iran ports led to oil price surge
Asia-Pacific markets traded lower Monday, as investors mull over a U.S. naval blockade on Iran’s ports, following talks between Washington and Tehran that failed to yield an agreement to end the Middle East conflict.
The breakdown of negotiations over the weekend in Islamabad reignited worries that the U.S.-Iran war will last longer than feared, leading to higher oil prices that will continue to strain economies worldwide.
India’s Nifty 50 was the worst-performing major Asian index, declining nearly 2%.
Japan’s Nikkei 225 fell 1.09%, while the Topix declined 0.67%. South Korea’s Kospi declined 1.26%, while the small-cap Kosdaq rose 0.26% in choppy trade. In Australia, the S&P/ASX 200 was 0.53% lower.
Mainland China’s CSI300 index inched 0.12% lower, while Hong Kong’s Hang Seng index extended early losses and was 1.22% lower.
Crude oil prices surged on Sunday after the talks ended without an agreement and the U.S. moved toward a blockade of Iranian port traffic. The West Texas Intermediate jumped 8.54% to $104.82 per barrel as of 11:45 p.m. ET. Brent crude gained 7.27% to $102.51 per barrel.
— Justina Lee
Asia markets fall as Trump’s move to blockade Hormuz Strait sends oil soaring
Oil rallies as U.S. Navy gets ready to blockade Iranian ports
Crude oil prices surged on Sunday, as the U.S. Navy prepares to impose a blockade on Iran’s ports after peace talks failed over the weekend.
U.S. crude oil futures for May delivery jumped 8% to $104.35 per barrel by 6:21 p.m. ET. International benchmark Brent for June delivery advanced 7% to $101.97.
U.S. Central Command said Sunday the military will blockade all maritime traffic entering and exiting Iranian ports on Monday at 10 a.m. ET. It added that the U.S. will not impede vessels transiting to and from non-Iranian ports.
— Spencer Kimball
Trump weighs limited strikes on Iran, Wall Street Journal reports
U.S. President Donald Trump and his advisers are considering resuming limited military strikes in Iran, following a breakdown in negotiations with the country, according to the Wall Street Journal, citing officials and people familiar with the situation.
The president was reportedly weighing the option on Sunday. He could also ramp up his bombing campaign to full force, though officials said that was less likely so as to avoid destabilizing the region further, the report said. He could also pursue a temporary blockade as he pressures allies to take the lead in military escort through the strait.
— Sarah Min
Trump says U.S. will blockade Strait of Hormuz after Iran peace talks fail
President Donald Trump on Sunday said the U.S. will blockade the Strait of Hormuz after talks held in Pakistan to end the Iran war hit the skids.
“Effective immediately, the United States Navy, the Finest in the World, will begin the process of BLOCKADING any and all Ships trying to enter, or leave, the Strait of Hormuz,” Trump said in a post to his social media platform Truth Social. “The Blockade will begin shortly. Other Countries will be involved with this Blockade. Iran will not be allowed to profit off this Illegal Act of EXTORTION.”
— Garrett Downs
Stock futures open lower
Stock futures opened lower on Sunday night.
Dow Jones Industrial Average futures dropped by 517 points, or 1.1%. S&P 500 futures lost 1.1% and Nasdaq 100 futures shed 1.2%.
— Sarah Min
