Dow, S&P 500, Nasdaq futures drop, oil prices jump as a joint attack from US and Israel rocks Iran

US stock futures plunged Sunday night after coordinated military strikes by the US and Israel on Iran jolted global markets.

Futures tied to the Dow Jones Industrial Average (YM=F) dropped about 1%. Contracts on the S&P 500 (ES=F) fell 0.5%, while Nasdaq 100 futures (NQ=F) slid around 0.3%.

The strikes came late Saturday after Tehran rejected US demands to scale back its nuclear program. Iranian leaders have promised a strong response, raising the possibility of a broader regional confrontation.

Oil markets reacted immediately. Brent crude futures (BZ=F), the American benchmark, jumped roughly 13% in early trading to trade at $82/barrel on supply fears. Iran is OPEC’s fourth-largest producer, and questions remain about political leadership and stability in the aftermath of Khamenei’s death.

The geopolitical shock adds to an already uneasy environment for equities. The S&P 500 (^GSPC) ended Friday lower and closed February in negative territory as renewed volatility in artificial intelligence and software stocks rattled markets. Investors have increasingly questioned whether rapid AI adoption could undermine traditional software companies’ business models.

Headlining the week’s economic calendar is Friday’s February jobs report, with Wall Street expecting the US to have added 60,000 jobs, down from January’s stronger-than-expected 130,000 gain that eased recession fears.

In corporate news, earnings continue with Broadcom (AVGO) reporting on Wednesday, followed by Marvell Technology (MRVL) on Thursday. Retail earnings will also be in focus, led by Target (TGT) and Costco (COST).