Wall Street is anticipated to begin the second week of March on a negative note as Dow Jones futures traded lower with crude oil prices surpassing $110 per barrel. S&P 500 futures and Nasdaq 100 futures also showed declines of about 1% and 1.1% respectively, reflecting a prevailing risk-averse sentiment in global markets.
The Dow Jones Futures were at 46,964.86, down 536.69 points or 1.13% before the opening of Wall Street on Monday. Despite a slight recovery, earlier in the session, futures had experienced more significant drops. This decline in oil prices to around $110 per barrel followed reports that the Group of Seven finance ministers would discuss coordinating with the International Energy Agency to release petroleum reserves.
Last week, the major US indices, including the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite, closed in the negative territory. The Dow Jones Industrial Average saw a 1% decrease to 47,501.55, marking its most substantial weekly decline since early April 2025. The S&P 500 recorded a decline of over 1% to 6,740.00 points, its sharpest weekly drop since mid-October, while the Nasdaq Composite slipped by 1.6% to 22,387.68.
Tensions in the Middle East heightened following Iran’s announcement of Mojtaba Khamenei as the new Supreme Leader, succeeding his late father Ali Khamenei. Notably, crude oil prices surged by approximately 50% since the joint strikes by the US and Israel on Iran on February 28. US President Donald Trump justified the spike in oil prices as a temporary consequence of addressing Iran’s nuclear threat, emphasizing the importance of safety and peace.
The recent surge in oil prices represents one of the most significant weekly gains in oil futures trading since the early 1980s.
