U.S. stock futures were lower on Monday, as the Dow Jones, S&P 500 and Nasdaq 100 indices fell, following Friday’s lower close.
Geopolitical and trade anxieties spiked over the weekend following U.S. military strikes on Iranian rocket launchers on Larak Island near the Strait of Hormuz, which triggered Iranian missile and drone retaliation against U.S. air bases in Jordan on Sunday. Meanwhile, President Donald Trump intensified trade tensions by calling Canada "the worst" for trade abuses and asserting his tariffs have "saved" the U.S. auto industry.
The market will turn toward key economic indicators this week, highlighted by Friday’s crucial August employment data. Investors will also be tracking a busy earnings lineup this week, featuring top AI infrastructure providers such as Dell Technologies Inc. (NYSE:DELL), Hewlett Packard Enterprise Co. (NYSE:HPE), and Broadcom Inc. (NASDAQ:AVGO), along with cybersecurity leader Palo Alto Networks Inc. (NASDAQ:PANW).
On Friday, Federal Reserve Chair Kevin Warsh used his first Jackson Hole address to warn investors that the fight against inflation remains far from finished. He delivered a hawkish message: inflation remains too high, the labor market is effectively at full employment, and financial conditions may not be restraining the economy much at all.
