31.03.202600:34:26UTC+00US Futures Slip as Oil Rallied Further

US stock futures declined on Tuesday as oil prices extended their rally amid escalating tensions in the Middle East, heightening concerns about potential impacts on inflation and economic growth. In Monday’s regular session, the Dow Jones Industrial Average edged up 0.11%, while the S&P 500 and the Nasdaq Composite fell 0.39% and 0.73%, respectively.

The S&P 500 is now nearing correction territory, standing 9.4% below its January peak. The Dow has dropped 10.5% from its high, and the Nasdaq Composite is down 13.4% from its recent peak. A pullback in Treasury yields was not enough to spark a sustained rebound, even after Federal Reserve Chair Jerome Powell delivered dovish remarks, noting that long-term US inflation expectations remain anchored despite increased uncertainty stemming from the conflict in the Middle East. He also emphasized that the current policy stance gives the central bank room to evaluate the economic fallout from the Iran war.

Investors are now looking ahead to key data releases, including March’s consumer confidence index and February’s JOLTS job openings report.