US equity futures were sharply lower on Tuesday as few signs of de-escalation to the war in Iran worsened the global economic outlook. Contracts for the S&P 500 and the Dow were 0.4% lower, while those for the Nasdaq 100 dropped over 1.7%, all three dropping to at least their lowest this year. Strikes between Iran and US allies in the Middle East extended to the fourth day, with strikes on energy facilities in the Persian Gulf and Iran’s formal warning of attacks on any vessels crossing the Strait of Hormuz. Oil and natural gas benchmarks surged, driving Treasury yields across the curve to rise sharply and pressuring all sector of credit-sensitive industries. Nvidia, Microsoft, Apple, and Alphabet were lower premarket. Meanwhile, the financial sector as investors recorded a surge in redemptions of its flagship private credit fund, adding to concerns on the sector that stemmed with Blue Owl halting liquidations. Conversely, Target was higher after issuing an optimistic guidance.
