Market Overview - U.S. stock index futures fell over 1% as investors anticipated a prolonged conflict in the Middle East, which could disrupt global trade and increase inflationary pressures [1] - The Dow E-minis were down 572 points (1.17%), S&P 500 E-minis down 75.75 points (1.1%), and Nasdaq 100 E-minis down 364.5 points (1.46%) [6] Sector Performance - Airlines, particularly Delta and United Airlines, saw significant declines of over 5% each in premarket trading due to flight halts and rising crude prices, which increased by 8% [2][1] - Financial stocks, including major banks like Bank of America and Citigroup, dropped over 2% each amid a negative outlook for the global economy [2][1] - Defense stocks such as Lockheed Martin and RTX rose around 6% each, with Kratos and AeroVironment surging 9% and 10.3% respectively, reflecting increased demand for defense amid geopolitical tensions [3] Economic Context - The geopolitical situation is compounded by existing market uncertainties related to AI disruptions and concerns in the private credit space [6] - The S&P 500 and Nasdaq experienced their steepest monthly declines since March 2025, while the Dow managed to achieve gains for the tenth consecutive month, marking its longest winning streak since January 2018 [7]