Futures Slide as Iran Conflict Escalates Amid Trade Tensions

U.S. stock futures fell early Tuesday as investors weighed escalating tensions in the Middle East and fresh tariff retaliation from Canada.

The Dow, S&P 500, and Nasdaq futures declined 0.9%, 0.3%, and 0.1% respectively, amid concerns over inflation after Brent crude oil prices jumped toward $100 a barrel.

The escalating U.S.-Iran conflict has raised fears of supply disruptions, while Canada's retaliatory tariffs on about $20 billion worth of U.S. goods have further complicated the trade situation.

Despite these macro headwinds, retail sentiment on Stocktwits flipped to 'bullish' for the SPY and QQQ exchange-traded funds last week, suggesting some investors remain optimistic despite the challenges ahead.