Stock market today: Dow, S&P 500, Nasdaq futures slip as Iran and the US ramp up Hormuz aggression

May 8, 2026 - 10:34

Stock futures pointed lower early Monday as renewed military posturing between the United States and Iran rattled investors, erasing the cautious optimism that had built up during a week of diplomatic talks over the Strait of Hormuz. Dow Jones Industrial Average futures fell roughly 100 points, while S&P 500 and Nasdaq-100 futures also dipped into negative territory.

The reversal came after Washington and Tehran traded fresh threats over the weekend, with both sides ramping up naval patrols near the critical oil chokepoint. Traders had been watching for signs of a detente after a week of back-channel discussions, but those hopes collapsed when Iran announced it would conduct live-fire drills in the strait and the US responded by deploying additional destroyers to the region.

The Strait of Hormuz handles about a fifth of the world's oil supply, and any disruption there tends to jolt energy markets. Crude prices climbed in early trading, adding pressure on stocks already nervous about inflation. The move also hit shares of major shipping and airline companies, which rely on stable fuel costs.

The S&P 500 had been trying to hold above its 50-day moving average, but Monday's gap down put that support level at risk. The CBOE Volatility Index, known as Wall Street's fear gauge, ticked higher as traders rotated into safe-haven assets like gold and US Treasuries.

Analysts noted that the market had priced in a de-escalation after the talks, making the sudden spike in aggression particularly jarring. With no new negotiations scheduled, investors are bracing for a volatile stretch ahead.