Futures Pointing To Slightly Lower Open On Wall Street

(RTTNews) - Stocks may move to the downside in early trading on Monday, extending the sharp pullback seen during last Friday's session. The major index futures are currently pointing to a slightly lower open for the markets, with the S&P 500 futures down by 0.1 percent.

Lingering concerns about the conflict in the Middle East may weigh on Wall Street, as President Donald Trump warned Iran the "clock is ticking."

Trump said in a post on Truth Social that Iran "better get moving, FAST, or there won't be anything left of them," leading to worries about the U.S. renewing military action.

A report from Axios citing two U.S. officials said Trump is expected to convene his top national security team in the Situation Room on Tuesday to discuss military options.

The U.S.-Iran war has effectively closed the vital Strait of Hormuz, leading to a spike in crude oil prices and subsequent concerns about inflation and the outlook for interest rates.

Treasury yields spiked last Friday amid speculation the Federal Reserve's next interest rate move could be an increase rather than a cut.

However, yields are giving back ground this morning amid a slump by crude oil futures, potentially limiting the downside on Wall Street.

Shortly after the start of trading, the National Association of Home Builders is scheduled to release its report on homebuilder confidence in the month of May. The housing market Index is expected to come in unchanged at 34.

Following the strength seen during Thursday's session, stocks pulled back sharply over the course of the trading day on Friday. The major averages all showed significant moves to the downside on the day.

The major averages finished the day off their lows of the session but still firmly negative. The Dow slumped 537.29 points or 1.1 percent to 49,526.17, the Nasdaq plunged 410.08 points or 1.5 percent to 26,225.14 and the S&P 500 tumbled 92.74 points or 1.2 percent to 7,408.50.

With the pullback on the day, the major averages were little changed for the week. The S&P 500 crept up by 0.1 percent, while the Nasdaq edged down by 0.1 percent and the Dow dipped by 0.2 percent.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Monday. Japan's Nikkei 225 Index slid by 1 percent, while Hong Kong's Hang Seng Index slumped by 1.1 percent.

Meanwhile, the major European markets are turning in a mixed performance on the day. While the French CAC 40 Index is down by 0.4 percent, the U.K.'s FTSE 100 Index is up by 0.4 percent and the German DAX Index is up by 0.8 percent.

In commodities trading, crude oil futures are falling $0.36 to $105.06 a barrel after soaring $4.25 to $105.42 a barrel last Friday. Meanwhile, after plunging $123.40 to $4,561.90 an ounce in the previous session, gold futures are edging down $3.70 to $4,558.20 an ounce.

On the currency front, the U.S. dollar is trading at 158.77 yen versus the 158.76 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.1650 compared to last Friday's $1.1625.