The U.S. stock market is bracing for a volatile start to the week after the U.S. launched strikes on three Iranian nuclear sites over the weekend. Stock futures were mostly flat on Monday morning, with the S&P 500 futures down just 0.3%. Oil prices initially jumped but later stabilized as traders seemed to bet that the conflict would not significantly disrupt oil supply.
Iran has labeled the attacks “outrageous” and warned of severe consequences, while the U.S. has pledged to prevent any closure of the critical Strait of Hormuz shipping route. Iran’s parliament reportedly voted to close the strait, but analysts deem this move unlikely. In other news, major U.S. health insurers announced plans to streamline the prior authorization process for certain claims.
These changes, which will be implemented across commercial coverage, Medicaid managed care, and other markets, aim to expedite and reduce the number of prior authorizations that often delay patient care.
Markets react to iran tensions
Tesla shares are rising slightly in premarket trading after the company launched its driverless robotaxi service in Austin, Texas.
CEO Elon Musk announced that the launch was the “culmination of a decade of hard work.” Analyst Dan Ives of Wedbush wrote that Tesla’s market cap, currently over $1 trillion, could rise significantly if the robotaxi service succeeds. Meanwhile, shares of Northern Trust are up nearly 5% in premarket trading following reports that Bank of New York Mellon is in discussions to acquire the Chicago-based financial services firm. However, Stellantis shares are down more than 2% as the new CEO takes the helm and announces a new leadership team.
The automaker, parent to Jeep and Chrysler, is navigating a drop in sales and pressure from U.S. tariffs. Investors should keep an eye on these key developments as markets react to the latest news and trends. While the conflict with Iran has heightened fears of a wider conflict in the Middle East, the overall effects on the market have been muted so far.
Analysts will closely monitor Iran’s reaction to assess how the conflict might unfold in the coming days and weeks.
