Nasdaq Futures Break the Last Support on -1.7% Dive, as War Gets Closer to US
Nasdaq futures dropped sharply early on Monday as rising oil prices and growing geopolitical concerns caused a widespread risk-off mentality
Quick overview
- Nasdaq futures dropped about 1.55% in early trading, indicating a bearish opening for US technology stocks.
- Escalating geopolitical tensions and surging oil prices, which rose above $111 per barrel, are contributing to a risk-off mood in global markets.
- Technical indicators show the Nasdaq has breached its 200-day moving average, raising concerns about potential declines below the 24,000-point level.
- Investor sentiment is further strained by political rhetoric suggesting broader geopolitical conflicts could emerge.
Live NAS100 Chart
Nasdaq futures dropped sharply early on Monday as rising oil prices and growing geopolitical concerns caused a widespread risk-off mentality in global markets.
Nasdaq Futures Point to Bearish Opening
Early market signals indicate a difficult start for US technology stocks, with Nasdaq futures falling about 1.55% in early trading. Futures were last trading at 24,302 points, down 368 points, suggesting the index could open with a significant bearish gap when markets begin trading.
The pressure comes as investors move toward safer assets, with the US dollar strengthening broadly amid worsening geopolitical uncertainty.
Nasdaq Futures Chart Daily – MAs Are Getting Broken
Technical indicators are also adding to concerns. The Nasdaq previously broke below its 100-day simple moving average in February, and Monday’s early trading saw the 200-day moving average also breached, opening the door for potential declines below the key 24,000-point level.
Oil Surge Intensifies Market Pressure
Energy markets are playing a major role in the latest selloff. Oil futures jumped roughly $10 at the open, pushing US crude prices above $111 per barrel.
Rising oil prices often create headwinds for equity markets, particularly for growth-oriented sectors like technology. Higher energy costs can fuel inflation and raise expectations that interest rates may remain elevated for longer.
This combination of rising inflation pressures and geopolitical uncertainty is weighing heavily on investor sentiment.
Escalating Conflict Adds to Uncertainty
Tensions in the Middle East escalated over the weekend after reports that Israel struck around 30 Iranian fuel depots, an action that reportedly went beyond what US officials expected.
Iran initially signaled it might halt attacks on neighboring countries if they did not host strikes against Iranian targets. However, the situation quickly shifted after strong rhetoric from former US President Donald Trump, prompting Iran to walk back some of its earlier statements.
Further uncertainty emerged after Iranian state media reported that Mojtaba Khamenei, the son of Iran’s Supreme Leader, had been named the country’s new Supreme Leader. Israel has previously stated it would target future Iranian leadership, placing the new leader in a highly vulnerable position.
Political Rhetoric Raises Additional Concerns
Adding to investor anxiety, Republican Senator Lindsey Graham suggested over the weekend that geopolitical tensions could spread further. Speaking in a television interview, he indicated that broader conflicts could emerge, even referencing Cuba as a potential future flashpoint.
While such remarks do not represent official US policy, they have contributed to an atmosphere of uncertainty that continues to weigh on global financial markets.
Closing Levels for Main US Indices for Friday
- Dow industrial average -453.19 points or -0.95% at 47501.55
- S&P index -90.69 points or -1.33% at 6740.02.
- NASDAQ index -361.31 points or -1.59% at 22387.68.
- Russell 2000 of small-cap stocks -60.27 points or – 2.33% at 2525.30.
For the trading week:
- Dow industrial average fell -3.01%.
- S&P index fell -2.02%.
- NASDAQ index fell -1.24%
- Russell 2000 index fell -4.06%
Trading Hours Shift After US Time Change
Market participants are also adjusting to a shift in trading schedules after the United States moved clocks forward by one hour over the weekend. As a result, the time difference between New York and London is temporarily reduced to four hours, which can affect trading patterns across international markets.
For investors, however, the bigger concern remains whether geopolitical tensions and surging oil prices will continue to pressure markets in the days ahead.
The Events for the Week Ahead
- Mon: Chinese Inflation (Feb), Japanese GDP Final (Q4), Japanese Average Cash Earnings (Jan)
- Tue: EIA STEO, Chinese Trade Balance (Jan-Feb), German Trade Balance (Jan)
- Wed: OPEC MOMR, US CPI (Feb)
- Thu: CBRT Policy Announcement, IEA OMR,US PPI (Feb)
- Fri: UK GDP (Jan), US PCE (Jan), US GDP 2nd Est (Q4), US JOLTS (Jan), Fitch on Italy & Spain, Moody’s on Germany & Greece
Nasdaq Live Chart
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