2026.03.0912:15:01UTC+00US Futures Extend Declines

US equity futures extended their decline to a new year-to-date low on Monday, as the escalation of the conflict involving Iran intensified the energy shock and threatened to weigh more heavily on the global economy if it persists. Futures linked to the three major US equity indices were down more than 1%.

Saudi Arabia announced a cut in oil production, joining Kuwait, Bahrain, and the UAE, after the closure of the Strait of Hormuz halted seaborne exports and pushed storage capacity beyond its limits. Oil and natural gas benchmarks consequently extended their rallies, driving US Treasury yields higher and reinforcing expectations that the Federal Reserve will keep interest rates elevated for longer.

Rate- and credit-sensitive technology stocks traded sharply lower in premarket dealings, with Amazon, Alphabet, and Microsoft all down around 1.5%. Jefferies also fell 3% after a downgrade from Morgan Stanley, which cited the bank’s exposure to potential defaults at First Brands and MFS and underscored growing pessimism around the private credit sector. By contrast, energy producers extended their recent gains.