Market Jitters Rise as Oil Hits New Heights and Key Earnings Loom

Monday's stock futures are taking a beating as the mess in the Middle East shakes investor confidence and outlooks for this week's earnings season kick in. The Dow's future dipped 1.2%, aiming to add to last week's steep slide - its worst since April. The S&P 500 and Nasdaq futures aren't faring any better, losing 1.1%. Last Friday's market saw a jittery session with all three major indexes slipping amid a disappointing jobs report for February. Meanwhile, crude oil futures climbed above $100 a barrel, stirring memories of tighter energy markets, while gold dipped over 1% to around $1,910 an ounce. Bitcoin tried to bounce back to about $67,600 from early lows but remains well shy of last week's $74,000 rally. The 10-year Treasury yield crept up to 4.17%, suggesting rising costs for borrowers across the economy.

Oil prices continue their march higher as the conflict in Iran disrupts supplies passing through the vital Strait of Hormuz. West Texas Intermediate futures surged by more than 12%, briefly hitting nearly $119 a barrel before settling near $102. This spike lifts oil to its highest since mid-2019, rattling markets and consumers alike. U.S. gasoline prices followed suit, with the national average reaching $3.48 per gallon - roughly 50 cents higher than last week according to AAA data. Echoing the situation on social media, President Donald Trump predicted oil prices will tumble once the Iranian nuclear threat is neutralized, describing the current elevated prices as a "very small price to pay" for peace.

The telehealth stock Hims & Hers Health (NYSE: HIMS) took a sharp turn upward, jumping over 40% in pre-market trades on news of a potential deal with Danish drug giant Novo Nordisk (NYSE: NVO). The partnership would see Hims & Hers selling Novo's weight loss medications through its platform, potentially announced as early as Monday. This follows a rocky back-and-forth after Hims & Hers prematurely launched a semaglutide-based drug - the active ingredient in Novo's blockbuster Wegovy - leading to a lawsuit over compounding rights. Novo's shares edged up 1% in response. The renewed collaboration signals a possible thaw in a previously icy relationship between these two players in the booming weight management space.

Prediction market platforms are also grabbing headlines as Kalshi and Polymarket pursue fresh funding rounds targeting valuations around $20 billion apiece, indicating strong investor interest. Just last year, Kalshi's valuation hovered near $11 billion after a $1 billion raise; Polymarket was pegged at about $9 billion in a late-2023 round. Kalshi claims to have passed $1 billion in annualized revenue recently with full U.S. operations, while Polymarket continues to operate outside the American market. These platforms have stirred controversy due to offering bets on highly sensitive geopolitical events, including the potential removal of foreign leaders, which is drawing extra scrutiny in financial circles.

All eyes will be on Hewlett Packard Enterprise (NYSE: HPE) as it posts earnings after today's close, marking the start of a packed tech earnings slate that includes Adobe and Oracle later in the week. HPE's last quarter disappointed with both results and guidance missing market expectations amid skepticism about heavy AI spending driving lofty valuations in tech. The company's shares fell 12% year-to-date through Friday and were down an extra 1% before markets opened Monday. Analyst comments ahead of the report suggest investors are searching for signs of whether the AI spending spree has legs or if caution is warranted.