Stock Market Today: Dow Futures Fall As Trump Announces Strait Of Hormuz Blockade—Goldman Sachs, Fastenal

U.S. stock futures declined on Monday following Friday’s mixed close. Futures of major benchmark indices were lower after President Donald Trump announced a blockade of the Strait of Hormuz.

On Friday, the Dow Jones index closed about 270 points lower after Iran blamed Israel for violating the ceasefire with attacks on Lebanon.

The peace talks being held in Islamabad collapsed on Sunday, after 21 hours of discussions. While Vice President JD Vance said that Washington would not compromise on its core demands, Iran stated that the demands made by the U.S. were excessive.

Meanwhile, the 10-year Treasury bond yields stood at 4.333%, and the two-year bond was at 3.822% at the time of writing. The CME Group’s FedWatch tool‘s projections show markets pricing a 96.4% likelihood of the Federal Reserve leaving the current interest rates unchanged in April.

Stocks In Focus

Goldman Sachs

• Wall Street expects Goldman Sachs Group Inc. (NYSE:GS) to report quarterly earnings at $16.41 per share on revenue of $16.93 billion before the opening bell.

• Benzinga’s Edge Stock Rankings indicate that GS maintains a strong trend in the short, long, and medium terms, with a solid Momentum score.

Fastenal

Children’s Place

IDEAYA Biosciences

Cues From Last Session

Information technology, real estate and consumer discretionary stocks recorded the biggest gains on Friday. However, health care and consumer staples and financial stocks declined. 

Insights From Analysts

Allianz’s chief economic adviser, Mohamed El-Erian, painted a sobering picture following the announcement of a blockade by the U.S. in the Strait of Hormuz. He said that this would raise incremental costs for Iran, U.S., and the nations importing crude oil from the Middle Eastern country.

He also cautioned that the global economy would also be affected as a result of the blockade.

“Companies, countries, and households worldwide are facing the burden of what is likely to be another leg up in the price of energy, helium, fertilizers, etc.,” he said.

Michael Townsend, managing director of legislative and regulatory affairs at Schwab, cautioned that the Strait of Hormuz being blockaded would raise oil costs not just for Asia, but also the U.S. since oil is priced globally.

“There’s growing concern, both in Washington and among investors, that no matter how quickly the war ends, the economic fallout is likely to last for months,” he said.

Upcoming Economic Data

Here’s what investors will be keeping an eye on this week.

Commodities, Crypto, And Global Equity Markets

Crude oil futures were trading higher in the early New York session by more than 8% to hover around $104.55 per barrel.

Gold Spot US Dollar declined 0.32% to hover around $4,733.17 per ounce. Its last record high stood at $5,595.46 per ounce. The U.S. Dollar Index spot was 0.32% higher at the 98.96 level.

Meanwhile, Bitcoin (CRYPTO: BTC) was trading 1.27% lower at $70,801.66 per coin, as per the last 24 hours.

Asian markets closed lower on Monday, except China’s CSI 300. India’s Nifty 50, Hong Kong’s Hang Seng, Australia’s ASX 200 indices, South Korea’s Kospi, and Japan’s Nikkei 225 indices fell. European markets were mostly lower in early trade.

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