Wall St set for mixed open as US-Iran tensions unsettle investors
By Niket Nishant and Utkarsh Hathi
May 4 (Reuters) - Wall Street's main indexes were on track for a choppy open on Monday as heightened investor anxiety over the Middle East conflict tempered the optimism from last week's earnings.
Futures whipsawed in a turbulent start to the week after conflicting reports about a U.S. warship near the Strait of Hormuz.
Tehran said it had forced a U.S. warship to turn back after it attempted to enter the Strait of Hormuz. Iran's semi-official Fars news agency said two missiles had hit the warship, but the United States denied the report.
The confusion was enough for investors to pause following a strong run of earnings last week, as they assess the aggressive rhetoric between Washington and Tehran and the risk of renewed escalation.
"I don't believe that the markets have properly priced in the long-term risks that are going to come," said Mark Malek, chief investment officer at Siebert Financial.
"There are going to be more shoes to drop. And you're going to see it in future earnings," he said, referring to the risk from higher oil prices.
The conflict, now in its third month, has continued to weigh on the global economy as oil prices stay elevated. Brent crude futures rose 2.5% on Monday and are trading above $110 a barrel.
At 8:44 a.m. ET, Dow E-minis fell 131 points, or 0.26%, S&P 500 E-minis lost 5.25 points, or 0.07%, and Nasdaq 100 E-minis gained 31 points, or 0.11%.
May is also historically the start of a weaker six-month stretch for stocks. Since 1945 through April 2026, the S&P 500 has gained an average of about 2% from May to October, according to data from Fidelity. That compares with an average gain of about 7% from November through April.
"Seasonal patterns can offer useful historical perspective, but they aren't always a reliable guide for what lies ahead," said Adam Turnquist, chief technical strategist at LPL Financial.
"An easing of tensions in the Middle East and a pullback in oil prices could provide ongoing support for equities, especially if earnings remain resilient."
Meanwhile, Berkshire Hathaway reported on Saturday that it was a net seller of stocks for the 14th consecutive quarter.
The conglomerate, often viewed as a bellwether of the U.S. economy, is closely watched for its insight into valuations and broader market conditions.
Separately, shares of GameStop dipped 3.6% while eBay rose 7.3% in premarket trading after the video game retailer unveiled a proposal to buy eBay for about $56 billion in a cash-and-stock deal.
Shares of logistics firms FedEx and United Parcel Service fell 4.5% and 3.3%, respectively, after Amazon.com said on Monday it was rolling out "Amazon Supply Chain Services", opening up its logistics network for other businesses to use.
(Reporting by Niket Nishant and Utkarsh Hathi in Bengaluru; Editing by Arun Koyyur and Pooja Desai)
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This story was originally published May 4, 2026 at 9:03 AM.