U.S. Futures fell on Monday as escalating tensions between the United States and Iran prompted investors to seek refuge in safer assets such as gold and government bonds.
Tehran has threatened to avenge the assassination of military commander Qassem Solimani, while President Donald Trump has warned that the United States would respond, “perhaps in a disproportionate manner” if Iran attacked an American person or entity.
Chevron (CVX.US) and Exxon Mobil (XOM.US) rose about 0.6% in premarket as Brent futures topped $ 70 a barrel after Trump also threatened to impose sanctions on Iraq if US troops were forced to withdraw from the country.
The Iraqi parliament earlier called on the US and other foreign troops to leave the country.
Shares of Lockheed Martin (LMT.US), the world’s largest defense contractor, rose 1.9%, while Northrop Grumman (NOC.US) and Raytheon (RTN.US) gained more than 1.5%.
Dow e-minis decreased by 148 points or 0.52%. The S&P 500 e-minis was down 15.5 points or 0.48% and the Nasdaq 100 e-minis was down 52 points or 0.59%.
Apple Inc. (AAPL.US) shares fell about 1% after the Needham broker lowered its rating to a “buy” from a “strong buy”, saying the shares had risen significantly in 2019.
Boeing Co (BA.US) shares fell 1.1%.
Trader Martin Nikolov