U.S. stock futures slide as tech losses and Iran tensions rattle markets

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U.S. stock futures slide

Highlights

Nasdaq-100 futures fall 1.65% before the open.
Tesla and Meta shares weigh on technology stocks.
Iran tensions lift oil as Treasury yields decline.

Dow Jones Industrial Average futures fell 0.68%, to 52,700, according to the latest market data. S&P 500 futures declined 1.03%, to 7,720.25, while Nasdaq-100 futures dropped 1.65%, to 29,513. According to CNBC, the selloff reflected mounting pressure on technology stocks and renewed geopolitical concerns over potential U.S. and Israeli strikes against Iran.

Technology stocks lead premarket losses

Tesla shares fell more than 3% in premarket trading despite the electric vehicle maker reporting third-quarter results that exceeded analysts' estimates. Meta Platforms slipped approximately 1% even after delivering revenue above expectations, suggesting investors remained cautious about valuations and future spending.

The weakness followed a positive Wednesday session in which the S&P 500 extended its winning streak to three days. JPMorgan traders identified renewed concerns about artificial intelligence financing and limited conviction following the recent technology-sector recovery. Selling in heavily weighted technology companies placed additional pressure on Nasdaq futures.

Iran tensions drive oil higher and bond yields lower

Energy markets added to the pressure after reports that the U.S. and Israel were considering renewed military strikes against Iran following the November midterm elections. The plans have not received final presidential authorization, but concerns about regional supply disruptions pushed Brent crude up 2.7% to $111.77 per barrel. West Texas Intermediate advanced 2% to $99.25.

Investors simultaneously moved toward U.S. government bonds, driving yields lower. The benchmark 10-year Treasury yield declined 7 basis points to 5.045%, while the two-year yield dropped 6 basis points to 4.761%. The contrasting moves reflected concerns that geopolitical instability could undermine economic confidence even as higher energy prices complicate inflation expectations.

Global markets retreat ahead of economic data

The selling extended beyond Wall Street. Europe's Stoxx 600 declined approximately 1.9%, while France's CAC 40 lost 1.34%. In Asia, South Korea's Kospi fell more than 3.14%, Japan's Nikkei 225 slipped 2.2%, and Hong Kong's Hang Seng dropped more than 3%.

Investors are also awaiting weekly U.S. jobless claims and earnings from Procter & Gamble, Lockheed Martin, Valero Energy, and Honeywell. Those releases could provide fresh evidence about corporate demand, consumer spending, and labor market conditions.

The simultaneous weakness in technology shares and global equities leaves markets particularly sensitive to incoming economic reports and geopolitical developments. Further changes in energy prices, Treasury yields, and corporate earnings expectations could determine whether the premarket decline develops into sustained selling.

We have previously highlighted that gold slips below $4,100 as investors reassess U.S. interest rate expectations.

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