Data from Stocktwits showed that retail sentiment on SPY and QQQ remains ‘bearish.’
- U.S. markets open the week in risk-off mode; rising geopolitical tensions in the Middle East sent oil soaring past the $100/barrel mark.
- Veteran strategist Ed Yardeni warned the escalating geopolitical situation could raise the probability of a market meltdown to 35%.
- Later this week, investors will monitor key economic data, including inflation and GDP readings, which could shape expectations for Federal Reserve policy.
U.S. stock futures signal a weak start to the week as geopolitical crisis in the Middle East sent oil prices soaring over $110 per barrel for the first time since 2022. This follows the closure of the Strait of Hormuz. Late Sunday night, President Donald Trump called rising oil prices a ‘very small price to pay’ amid escalating tensions.
Veteran strategist Ed Yardeni raised the probability of a ‘market meltdown’ to 35%, citing the conflict in Iran as a primary threat to global stability.
As of 4:00 a.m. ET on Monday, Dow, S&P, and Nasdaq futures fell 1.6%, while Russell 2000 futures declined nearly 3%.
Meanwhile, retail sentiment toward the SPDR S&P 500 ETF (SPY), an exchange-traded fund that tracks the S&P 500 Index, and the Invesco QQQ Trust (QQQ) ETF, which tracks the Nasdaq 100 Index, has remained ‘bearish’ amid high message volumes.
Trending Stocks To Watch
Watch out for oil stocks (USO, INDO, BATL, TPET) amid the volatility in crude oil prices. Saudi Arabia has reportedly offered 4.6 million barrels via pipeline to ease pressure, but supply concerns remain high.
Hims & Hers (HIMS): The stock surged over 40% in pre-market on Monday following reports of a weight-loss partnership with Novo Nordisk.
Nvidia (NVDA): Billionaire investor Leo KoGuan has reportedly doubled his stake to 2 million shares.
Micron (MU): The stock has garnered retail attention ahead of its S&P 500 inclusion later this month, alongside GE Vernova, Lam Research, and Applied Materials. It also reports earnings next week.
Warner Bros Discovery (WBD) & Paramount (PSKY): Tencent is reportedly eyeing a multi-million dollar stake in the Paramount/Warner Bros. Discovery deal.
Dyne Therapeutics (DYN): Announced the initiation of a Phase 3 trial for Myotonic Dystrophy Type 1 and positive results for its Duchenne Muscular Dystrophy treatment.
Also keep an eye on automakers (Tesla, Ford, General Motors): The Chinese government has reportedly warned of another global semiconductor supply chain crisis stemming from tensions involving chipmaker Nexperia and its Chinese subsidiary.
Agilent Technologies (A) has agreed to acquire pathology solutions provider Biocare Medical in an all-cash deal valued a $950 million.
Other tickers trending on Stocktwits at the time of writing included Helus Pharma (HELP), Iovance Biotherapeutics (IOVA), Red Cat Holdings (RCAT), and Dell Technologies (DELL).
Other Catalysts To Watch
On the economic front, no data release is scheduled for the day. Investors await the inflation and GDP print later in the week.
On earnings radar, watch out for Hewlett Packard Enterprise (HPE), which reports numbers after the bell today.
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