S&P 500, Nasdaq, Dow futures slide with Hormuz closure, Mag 7 earnings in focus

US stock futures slipped Sunday night as friction in Iran and rising oil prices dampened investor appetite ahead of a high-stakes week for markets.

Futures linked to the Dow Jones Industrial Average (YM=F) fell about 0.2%. Contracts on the S&P 500 (ES=F) and Nasdaq 100 (NQ=F) each dropped roughly 0.2%.

Both the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) closed last week at record highs, capping a strong April rally. The S&P 500 has gained more than 9% this month, while the Nasdaq has surged over 15%. The Dow is up more than 6% over the same period.

Global tensions intensified after stalled efforts to revive Iran-related talks failed to open the Strait of Hormuz, as global oil supply restrictions continue to push up consumer prices across a wide-range of industries.

Crude prices moved higher, with Brent (BZ=F) crude and West Texas Intermediate (CL=F) futures climbing around 2% each to trade above $100 and $96 a barrel, respectively.

Markets now turn to a pivotal stretch on the calendar. Earnings from several mega-cap tech names of the colloquially named “Magnificent Seven” are due in the coming days, a strong test of stock resilience in response to the Iran war.

Investors are also focused on the upcoming decision from the Federal Reserve. The meeting is expected to be the penultimate one chaired by Jerome Powell before leadership transitions to Kevin Warsh.