<ul>
<li>Futures down: Dow 1.76%, S&amp;P 500 1.84%, Nasdaq 2.32%</li>
<li>Tehran vows to close Strait of Hormuz, impacting oil prices</li>
<li>Investors await Fed signals amid rate cut uncertainty</li>
<li>MongoDB shares plunge 27% after profit forecast misses estimates</li>
</ul>
(Updates prices throughout, adds details on tech and gold stocks)
By Johann M Cherian and Pranav Kashyap
March 3 (Reuters) - The Nasdaq led losses among U.S. stock index futures with a 2.3% drop on Tuesday as investors assessed the fallout of U.S. and Israeli strikes on Iran on inflation and global trade.
Tehran’s threat to attack any vessel attempting to transit the Strait of Hormuz, combined with production halts by several Middle Eastern oil and gas producers, has driven global shipping rates higher and pushed up crude and natural gas prices.
The strait, a critical chokepoint, carries roughly one-fifth of the world’s total oil consumption.
Industries such as airlines and travelthat are exposed to crude prices were knocked back for a second day. Delta (DAL.N) and Royal Caribbean (RCL.N) fell about 4% each.
“Much will depend on the price of oil,” said a group of strategists led by Deutsche Bank’s Jim Reid. “Any sustained spike would undoubtedly trigger a more meaningful risk-off move.”
Technology stocks such as Nvidia (NVDA.O) and Microsoft (MSFT.O) were down 3.1% and 1.8%, respectively, after gaining in the previous session. Nasdaq-listed memory names such as Sandisk (SNDK.O) slumped 8.4% and Western Digital (WDC.O) lost 5.6%, also cooling off from a strong rally in February.
Investors were worried that higher oil prices could stoke inflation across the broader economy and further complicate policy decisions for central bank officials already contending with price increases driven by tariffs.
The U.S. 10-year Treasury yield (US10YT=RR) touched its highest level in more than a week and investors pushed back expectations for a 25-basis-point interest rate cut by the Federal Reserve to September from July, according to LSEG-compiled data.
Markets will be looking out for fresh signals from the Fed, given recent divisions over the path of rates. John Williams, a voting member, Jeffrey Schmid, and Neel Kashkari are scheduled to speak later in the day. At 05:59 a.m. ET, Dow E-minis (YMcv1) were down 858 points, or 1.76%, S&amp;P 500 E-minis (EScv1) were down 124.5 points, or 1.84%. Nasdaq 100 E-minis (NQcv1) were down 579.5 points, or 2.32%
Futures tracking the small-caps index (RTYcv1) slid 2.8%, while Wall Street’s fear gauge, the CBOE volatility index (.VIX) , spiked to a fresh three-month high of 26.99 points.
Oil and gas as well as defense stocks were among the few gainers. Occidental (OXY.N) rose 3.7% and Cheniere Energy (LNG.N) climbed 9.8%, while Lockheed Martin (LMT.N) gained 1.4% and AeroVironment (AVAV.O) added 2.7%. Prices of traditional safe-havens such as precious metals slid due to a stronger dollar (=USD) , pulling down U.S.-listed miners such as Sibanye Stillwater (SBSW.N) and Gold Fields (GFI.N) by 12% and 9%, respectively.
U.S. investors are also navigating uncertainties about the scope of disruption AI models could have on traditional businesses, alongside jitters in the private credit space.
MongoDB (MDB.O) shares plunged 27.4% after the database software company forecast quarterly profit below Street estimates.
A packed slate of U.S. data will land later this week, including January retail sales, ADP employment figures and the closely watched non-farm payrolls report.
CBOE Volatility Index
<img src="https://imageproxy.pbkrs.com/https://www.reuters.com/graphics/AUTOMATED-20260302/VIX-INDEX-365D/akveyzjrwvr/chart.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" width="1420" height="844" original-src="https://imageproxy.pbkrs.com/https://www.reuters.com/graphics/AUTOMATED-20260302/VIX-INDEX-365D/akveyzjrwvr/chart.png"/>

MDBX

U.S. stock index futures fell sharply, with the Nasdaq down 2.3%, as investors reacted to escalating tensions in the Middle East and their potential impact on inflation. Tehran's threats regarding the Strait of Hormuz have raised oil prices, affecting industries reliant on crude. Technology stocks also suffered, with MongoDB shares plummeting 27% after a disappointing profit forecast. The market is awaiting signals from the Federal Reserve amid uncertainty over interest rate cuts, while safe-haven assets declined due to a stronger dollar.

- U.S. stock index futures show significant declines, with the Nasdaq down 2.32%, amid concerns over rising oil prices and geopolitical tensions following U.S. and Israeli strikes on Iran.  
- Tehran's threats to close the Strait of Hormuz have escalated global shipping costs and increased crude prices, impacting industries such as airlines and travel.  
- Investors anticipate signals from the Fed regarding interest rate cuts, while MongoDB shares plummet 27% after disappointing profit forecasts.

Reuters

MongoDB

US STOCKS-Wall St futures slide as Middle East conflict stokes inflation worries