Mideast Tensions Trigger Global Market Slide

Global Markets Decline Amid Mideast Tensions

Global stock markets experienced declines on May 28, 2026, following new U.S. military strikes against Iran, which escalated geopolitical tensions in the Middle East. This development led to a rise in oil prices and a retreat in U.S. stock futures, particularly impacting technology stocks.

Brent crude futures increased by approximately 2% to trade around $94 a barrel, partially reversing previous declines. Concurrently, U.S. stock futures, led by Nasdaq-100 contracts, showed slight retreats. European indices also registered losses, with the FTSE 100 down 0.76%, the DAX down 0.24%, and the CAC 40 down 0.38%. The FTSE MIB was an outlier, showing a marginal gain of 0.09%.

The market reaction occurred as investors awaited the release of the Federal Reserve's preferred inflation gauge, the PCE price index, which economists anticipated would show an acceleration to 3.8% year-over-year for April, exceeding the Fed's 2% target. Despite the broader market downturn, shares of Snowflake surged over 30% in premarket trading after its earnings report alleviated concerns about AI's impact on its business model.