US Stock Market Outlook: Indices Drop, Oil and Defense Stocks Rise Amid Iran Conflict

US Stock Futures Decline Ahead of Market Open

On Monday morning, US stock futures showed a collective decline, with the Dow futures down 1.17%, Nasdaq futures down 1.48%, and S&P 500 futures down 1.15%.

Major Tech Stocks Drop

Prominent tech stocks experienced a downturn before the market opened.

• Micron Technology (MU) fell over 3%.
• Tesla (TSLA), AMD, Google (GOOGL), Broadcom (AVGO), and Amazon (AMZN) dropped more than 2%.
• Nvidia (NVDA) decreased by over 1%.

Chinese Stocks Also Decline

Most popular Chinese stocks saw declines as well.

• Pony.ai (PONY) fell over 4%.
• Baidu (BIDU) and Xpeng Motors (XPEV) dropped more than 3%.
• Alibaba (BABA) and JD.com (JD) fell over 2%.

Geopolitical Tensions Impact Energy Prices

The ongoing conflict between the US and Iran, along with a drone attack on Saudi Arabia's largest oil refinery, has raised concerns over global energy supply.

• WTI crude oil futures rose over 7%, surpassing $75.
• Brent crude oil futures also increased by over 7%, reaching up to $82.

Oil Stocks Surge

US oil stocks were active before the market opened.

• Occidental Petroleum (OXY) rose over 6%.
• ConocoPhillips (COP) increased by over 5%.
• ExxonMobil (XOM) and Chevron (CVX) saw gains of over 4% and 3%, respectively.

Aerospace and Defense Stocks Rise

Aerospace and defense stocks showed positive movement.

• AeroVironment (AVAV) surged over 10%.
• Lockheed Martin (LMT), Raytheon Technologies (RTX), and Kratos Defense (KTOS) rose over 6%.

Precious Metals Gain

Gold and silver prices increased significantly.

• Gold rose nearly 2%, reaching above $5400.
• Silver increased over 1%, briefly surpassing $96.

Airline Stocks Decline

Airline stocks faced a downturn.

• United Airlines (UAL) and American Airlines (AAL) dropped over 6%.
• Delta Air Lines (DAL) fell over 5%.

UBS Upgrades Palantir

UBS has upgraded Palantir (PLTR) to a "Buy" rating, citing its strong position in AI and data sectors.

• The firm expects a 70% revenue growth this year and maintains a target price of $180.

Other Notable Developments

• Tesla's deliveries in Denmark fell 18% year-over-year in February.
• Novo Nordisk (NVO) is investing over €430 million to upgrade its Irish factory for Wegovy production.
• Cameco (CCJ) signed a $1.9 billion uranium supply agreement with India.

Market Outlook

As geopolitical tensions rise, analysts are closely monitoring the situation, particularly in the oil market, where prices could spike significantly if conflicts escalate.