Dow Jones futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures, after Israel thwarted Iran’s Saturday drone and missile attack on Iran.
X
Israel, the U.S. and other allies shot down 99% of the 300-plus Iranian drones and missiles. The attack slightly damaged an Israeli military base.
Tehran had vowed retaliation for Israel’s April 1 strike on its consulate in Damascus, which killed a senior general. Iran told the United Nations that the matter “can be deemed concluded.” The well-telegraphed attack appears to have been an effort to show a forceful response while minimizing the risk of much-wider escalation.
President Biden and fellow Group of Seven leaders “firmly condemned” the attack in a Sunday statement, but appealed for calm.
Israel’s war cabinet met to mull its options.
Dow Jones Futures Today
How will Dow futures and crude oil respond?
Bitcoin plunged Saturday, falling from about $67,000 to a low of $60,908. It’s currently above $64,000. The Bitcoin price tumbled 5.1% to $66,870.29 on Friday.
Tel Aviv’s benchmark TA-35 index rose 0.3% on Sunday after skidding 3.4% in the prior three sessions, partly in anticipation of an Iran attack.
Dow Jones futures open at 6 p.m. ET, along with S&P 500 futures and Nasdaq 100 futures.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
That could be especially true as futures traders try to digest geopolitical news that’s still unfolding.
The stock market rally sold off Friday on fears of an Iran attack. The Nasdaq fell for the week, despite setting a record close Thursday as Nvidia (NVDA) and other megacap and AI stocks rebounded. The S&P 500, Dow Jones and Russell 2000 suffered larger weekly losses.
The CBOE Volatility index, or VIX, spiked Friday to the market fear gauge’s highest levels since late October on Iran concerns.
Nvidia Leads 5 Stocks Near Buy Points
Other News
Late Friday, Tesla (TSLA) cut the price of Full Self-Driving subscriptions to $99 a month from $199. Tesla has halted Cybertruck deliveries, according to online chatter over the weekend.
Salesforce.com (CRM) is is in late-stage talks to buy data-management software maker Informatica (INFA), The Wall Street Journal reported Friday night.
Key Earnings Loom
Goldman Sachs (GS) and Charles Schwab (SCHW) report early Monday. Goldman stock fell below its 50-day line on Friday, while Schwab is holding in a buy zone.
Chip-equipment giant ASML (ASML) and Nvidia chipmaker Taiwan Semiconductor (TSM) may be the week’s two most important earnings. Their results and guidance have big implications for the chip sector, including Nvidia, Broadcom (AVGO), Lam Research (LRCX), Applied Materials (AMAT) and KLA Corp. (KLAC).
All of these chip stocks have new bases or potential entries.
Nvidia stock is on IBD Leaderboard, SwingTrader and the IBD 50. KLA stock is on the IBD Long-Term Leaders list. Nvidia, ASML and Broadcom stock are on the IBD Big Cap 20.
Join IBD experts as they analyze leading stocks and the market on IBD Live
Stock Market Rally
The stock market rally had a tough week on a hot CPI inflation report and Mideast fears, with Friday’s losses wiping out Thursday’s bullish signals.
The Nasdaq, which hit a record close Thursday, fell 1.6% in Friday’s stock market trading to end the week with a 0.45% loss. The composite finished below the 21-day line but just above the 50-day and 10-week lines. It’s also still trading with the big April 4 reversal day.
The S&P 500 index sank 1.55% for the week, below the 21-day. The benchmark index closed just above its 50-day line but below its 10-week.
The Dow Jones Industrial Average slumped 2.4% to the lowest level since late January while the small-cap Russell 2000 shed 2.9% to the lowest since late February. Both are clearly below the 50-day.
The Invesco S&P 500 Equal Weight ETF (RSP) fell 2.6%, knifing through the 50-day line Friday. The First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) slumped 1.7%, below the 50-day line to its worst levels since late February.
Crude oil fell 1.4% to $85.66 a barrel for the week, backing off Friday’s intraday high of $87.67. Gold climbed 1.3% to $2,356.20 an ounce, also well off Friday highs.
The 10-year Treasury yield leapt 12 basis points to 4.5%, with Thursday’s peak of 4.59% a five-month high. Investors only see a modest chance of a Fed rate cut in June and are only leaning toward a move in July.
Stock Market Fear Gauge Soars
The CBOE Volatility index shot up 16.1% on Friday, hitting its highest levels since late October. Excessive fear could foreshadow at least a short-term bottom. But the market fear gauge is still well off its October peaks, let alone its Covid highs.
Another…
Read More: Dow Jones Futures Loom After Iran Drone, Missile Attack On Israel