MW U.S. stock futures slide, oil prices surge as new attacks threaten the cease-fire with Iran
By Mike Murphy
The S&P 500 snapped a nine-week winning streak Friday.
U.S. stock-index futures fell on Sunday, after a massive tech selloff on Friday interrupted Wall Street's two-month rally, and after new developments threatened the fragile cease-fire in the Iran war.
Dow Jones Industrial Average futures (YM00) were down more than 200 points, or 0.4%, late Sunday. S&P 500 futures (ES00) were off 0.5% and Nasdaq-100 futures (NQ00) were down 0.5%. Bitcoin (BTCUSD) was trading below the $62,000 level, down about 14% over the past five days.
West Texas Intermediate crude prices (CL.1) jumped more than 3%, toward $94 a barrel, after settling Friday around $90 a barrel.
Iran on Sunday reportedly launched a barrage of missiles at Israel, following Israeli airstrikes on Beirut targeting Iranian-backed Hezbollah. Most of the Iranian missiles were intercepted and there were no reported injuries, the Wall Street Journal reported. It was the first Iranian attack against Israel since the cease-fire agreement took effect in early April.
Iran said it would continue to attack Israeli targets if Israel continues to strike against Hezbollah in Lebanon, the Associated Press reported. Fox News reported President Donald Trump was urging both sides to back down. "You've shot your missiles, that's enough. Get back to the table and make a deal," he said about Iran in comment to Fox News on Sunday.
The White House had no immediate official comment Sunday, but the U.S. Central Command tweeted that "U.S. forces across the Middle East remain vigilant and ready."
The escalation could further complicate ongoing negotiations to end the war and reopen the strategic Strait of Hormuz.
Earlier on Sunday, the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, approved an increase in July crude output. The seven nations, led by Saudi Arabia, agreed to raise production targets by 188,000 barrels a day, further unwinding output cuts that began in 2023, although the move is largely symbolic with the Strait of Hormuz remaining effectively shut by the Iran war. The announcement also doesn't take into account production by the United Arab Emirates, which pulled out of OPEC+ last month.
Meanwhile, Wall Street braced for trading to restart Monday following Friday's selloff, which saw the tech-heavy Nasdaq COMP suffer the largest single-day point drop in its history, tumbling more than 1,121 points, or 4.2%, its biggest percentage drop in more than a year. The S&P 500 SPX fell 2.6%, its worst drop since October, and the Dow DJIA declined 1.4%. All three major indexes declined for the week, as the S&P 500 snapped a nine-week winning streak.
See: S&P 500 sees $1.8 trillion wipeout, Nasdaq tallies biggest point drop on record: What investors need to know about Friday's selloff
The selloff was sparked by a surprisingly strong May jobs report, which raised expectations that the Federal Reserve will raise interest rates later this year - making tech companies' massive capital spending on AI infrastructure even more expensive. Treasury yields spiked, with the 10-year Treasury yield BX:TMUBMUSD10Y hitting a two-week high while the policy-sensitive 2-year Treasury BX:TMUBMUSD02Y surged to its highest level since February 2025
The spring rally has been led by AI-related chip stocks such as Micron $(MU)$ and Broadcom $(AVGO)$, which both saw sharp declines Friday. Some analysts cited Friday's meltdown as a return to the rotation trade seen earlier this year, out of tech stocks and into a broader selection of industries, including healthcare, financials and consumer staples, as the narrative shifts back toward inflation worries.
Read more: These are the market's new hot stocks as investors flee from tech
"For most of the past two months, markets have displayed an almost supernatural ability to ignore risk," Stephen Innes, managing partner at SPI Asset Management, wrote in a weekend note. "Yet beneath the surface, something important is beginning to change. The market is gradually moving away from a world where investors debate growth and toward a world where they debate the cost of growth. That distinction may end up defining the second half of the year."
Inflation will likely be front of mind for investors this week, with the consumer-price index reading Wednesday and the producer-price index report coming Thursday.
SpaceX $(SPCX)$ is also scheduled to launch it highly anticipated initial public offering on Friday, looking to raise $75 billion in the largest IPO ever.
-Mike Murphy
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June 07, 2026 18:20 ET (22:20 GMT)
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