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US stock futures moved lower on Monday as rising oil prices and renewed US-Iran tensions fueled inflation fears. Brent crude climbed above $110, while Treasury yields hit multi-month highs ahead of key earnings from Nvidia, Walmart, and Target.
US stock futures opened lower on Monday as rising oil prices and renewed US-Iran tensions rattled investors ahead of a key week for markets. Dow futures dropped more than 300 points, while S&P 500 and Nasdaq 100 futures fell 0.5% and 0.4%.
Oil continued its rally for a third straight session, with Brent crude climbing above $110 per barrel and WTI trading near $106. The move comes as hopes for a US-Iran deal faded, increasing concerns over disruptions in the Strait of Hormuz, one of the world’s most important oil routes.
The spike in energy prices also pushed bond yields sharply higher. The US 10-year Treasury yield rose to 4.63%, its highest level since February 2025, while the 30-year yield hit 5.15%. Investors now fear higher inflation could force central banks, including the Federal Reserve, to keep interest rates elevated for longer.
Currency markets were also impacted. The US dollar stayed near recent highs, while analysts warned that prolonged oil strength could extend the dollar rally further.
Meanwhile, several global banks upgraded forecasts for China’s yuan, citing strong exports and improving US-China trade relations. HSBC now expects the yuan to strengthen to 6.65 per dollar by the end of 2026, while Goldman Sachs sees the currency reaching 6.50 within 12 months.
Gold prices remained under pressure despite geopolitical tensions. Spot gold traded near $4,540 an ounce after falling almost 4% last week, as rising bond yields reduced demand for non-yielding assets.
Food inflation also remained in focus across the US economy. Beef prices jumped 15% year-over-year to a record $6.90 per pound, while coffee prices surged 18.5%. Tomato prices skyrocketed 40% in April due to supply shortages caused by poor weather in Florida.
Markets are now waiting for major earnings reports this week, including Walmart, Target, and especially chip giant Nvidia, whose results could heavily influence sentiment around the AI-driven stock rally.
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Last update: May 18, 2026