Traders work on the floor of the New York Stock Exchange (NYSE) on May 27, 2026, in New York City.
Spencer Platt | Getty Images
Stock futures slipped Sunday night after Iran reportedly fired missiles at Israel, jeopardizing a fragile ceasefire and deepening concerns following last week’s sharp Nasdaq selloff
Futures tied to the Dow Jones Industrial Average lost 80 points, or 0.2%. S&P 500 futures and Nasdaq 100 futures each lost 0.2% as well.
The reported strike raised fresh concerns about the stability of the ceasefire between Washington and Tehran. The reported missile attack followed a post on X by Iranian Parliament Speaker MB Ghalibaf, who argued that the U.S. naval blockade and alleged breaches of agreements related to Lebanon constitute violations of the ceasefire.
On Friday, the Nasdaq Composite fell 4.18% to 25,709.43 — its biggest drop since April 2025. The S&P 500 sank 2.64% to close at 7,383.74, and the Dow lost 695 points to end the week at 50,866.78, a day after hitting a new high. For the week, the S&P 500 dropped more than 2%, the Nasdaq fell 4.7%, and the Dow edged lower.
The slide on Friday followed a stronger-than-expected May jobs report that lifted Treasury yields and intensified worries that higher financing costs could weigh on companies investing heavily in AI expansion.
“The stock market may be becoming a victim of its own success,” said Callie Cox, chief market strategist at Ritholtz Wealth Management. “The job market has turned around, yet the threat of persistently high inflation seems to be the risk looming on everyone’s minds.”
“Growth and momentum have outpaced almost everything since the March lows,” she added. “That’s not what you’d expect in a high-rate, high-inflation environment, and these strategies may be vulnerable to disappointment if cost pressures stay elevated.”
In the week ahead, investors will be focused on inflation data and the public debut of Elon Musk’s SpaceX on Friday. The offering is expected to be one of the largest in Wall Street history and could be the market’s biggest test yet of the AI valuation narrative.
“Blockbuster offerings have marked the peak of excess in past market cycles, so there seems to be an awkward silence around what this could signal for sentiment,” Cox said. “Many investors seem restrained and skeptical, but can that temperament exist when the biggest IPO of all time is on deck?”
Investors will also be watching for the May Consumer Price Index and Producer Price Index reports — released on Wednesday and Thursday, respectively — which are expected to indicate ongoing inflationary pressures.
