Dow futures fall over 300 points as Trump threatens escalation, oil prices rise

US stock market futures on Wall Street declined as trading resumed on Sunday evening local time after the three-day long weekend. Oil prices continue to rise, as does the US Dollar, while gold and silver prices are down in-line with risk assets.

Futures linked to the Dow Jones are down nearly 270 points, while those on the S&P 500 and the Nasdaq are down 40 points and 170 points respectively. The fall comes after indices had staged a sharp recovery from intraday lows last Thursday, with the S&P 500 and Nasdaq closing with modest gains and the Dow ending just below the flat line after reversing losses of over 600 points.

US President Donald Trump, in an expletive-laden post on Truth Social, announced that the US will strike Iran’s power plants and bridges and that Iran would be living in hell if the Strait of Hormuz is not opened before his April 6 deadline.
“Tuesday will be Power Plant Day, and Bridge Day, all wrapped up in one, in Iran. There will be nothing like it!!!” Trump posted.

He later also went on to post “Tuesday, 8:00 PM Eastern Time!” without specifying further details.

Crude oil prices continue to rise with the US Crude trading at a premium compared to the benchmark Brent. WTI is currently trading 3% higher, closer to the mark of $115 a barrel, while Brent trades at $111.

This is also an important week in terms of Macro data for the US markets, as the March inflation numbers will be reported on Friday. This will be the first full month of the impact of higher oil prices due to the Iran war. In addition to this, PCE inflation for February on Thursday, minutes of the Fed meeting on Wednesday, and results from Delta Airlines and Levi Strauss will also be reported.