US Stocks to Extend Losses as Iran Concerns Mount: Markets Wrap
(Bloomberg) — US stock futures pointed to the first back-to-back losses of 2026 as traders watched for an American response to the protests in Iran. Metals topped all-time highs.
Contracts on the S&P 500 fell 0.4% as concerns grew over the potential fallout from unrest in the OPEC producer and the threat of intervention by US President Donald Trump. Reuters reported that some personnel have been advised to leave a US air base in Qatar. Brent crude topped $66 a barrel.
Metals built on their blistering start to the year. Silver surged past $90 an ounce for the first time, spot gold hit a record, and tin and copper climbed to fresh highs. Base metals have been buoyed by strong industrial demand expectations, while gold and silver are also benefiting from the latest attacks on the Federal Reserve and a tense geopolitical backdrop.
Markets face a packed agenda of more potential catalysts on Wednesday, including big bank earnings, a slate of Fed speakers, US data and a possible Supreme Court ruling on tariffs. Investors will also follow rhetoric around Greenland as diplomats from the island and Denmark meet at the White House.
Trump posted on Truth Social that Greenland was vital to US plans to build a “Golden Dome” missile defense shield.
“The pullback is clearly linked to the latest developments in Iran, it’s clearly visible on oil prices and on the VIX,” said Alexandre Baradez, chief market analyst at IG in Paris. “There’s clearly no panic, but there’s more and more concerns weighing on the market’s shoulders when it comes to Trump policies.”
The dollar mostly held its advance from the prior session. Treasuries rose across the curve, with the 10-year yield falling three basis point to 4.15%. Bitcoin climbed above $95,000 for the first time since November, signaling demand for some riskier assets.
Bank of America Corp. rose in premarket trading after fourth-quarter revenue and net income topped expectations. Wells Fargo & Co. fell as severence costs drove up expenses and net interest income fell short. Citigroup Inc. will report later on Wednesday as the earnings season gathers pace.
What Bloomberg Strategists Say…
“Rising metals prices are pushing up costs in a way that risks driving up inflation expectations, a challenge for bond markets and for central banks preparing to ease policy this year.
—Nour Al Ali, Markets Live strategist. For full analysis, click here.
Metals have notched sharp gains since late 2025 as markets price in further Fed rate cuts to support US growth. Precious metals have led the advance, underpinned by the debasement trade, with investors steering clear of bonds and currencies amid rising debt concerns.
Silver’s strong rally may become overstretched in the near term, though supply-and-demand dynamics should support the metal over the longer run, said Stephan Kemper, chief investment strategist at BNP Paribas Wealth Management.
“Demand is benefiting from two structural trends: the decarbonization of the economy and the high level of investment in artificial intelligence,” Kemper said. “Any serious correction in silver is most likely a buying opportunity for long-term investors.”
For Marija Veitmane, head of equity research at State Street Bank, earnings should set course of markets in the near term. Wednesday’s PPI and retail data releases for November are unlikely to change the outlook significantly, given that Black Friday sales typically offer somewhat distorted figures.
“Our expectation is for fairly strong earnings,” Veitmane said. “Expectations are still fairly low and should make it comfortable for companies to exceed them, and potentially give us constructive guidance given that economic growth has been surprising on upside.”
In Europe, the Stoxx 600 struggled to gain momentum. Asian equities extended their outperformance on optimism that a likely election in Japan could cement Prime Minister Sanae Takaichi’s pro-stimulus agenda.
Corporate News:
Bank of America Corp.’s traders posted a strong fourth quarter as the company reaped the benefits of volatile markets and net interest income topped analysts’ estimates. Wells Fargo & Co. missed analysts’ profit estimates as severance costs drove up expenses. Trip.com Group Ltd.’s depositary receipts slump in premarket trading as Chinese authorities take aim at the travel platform over alleged antitrust conduct. BP Plc said it expects to take as much as $5 billion in writedowns for the fourth quarter, just weeks after replacing its chief executive officer as it strives to turn around its fortunes. Netflix Inc. is working on revised terms for its Warner Bros. Discovery Inc. acquisition and has discussed making an all-cash offer for the company’s studios and streaming businesses, people familiar with the discussions said. Tesla Inc. will stop selling the advanced driver-assistance system it calls Full Self-Driving, and instead switch to an entirely monthly subscription service. Some of the main moves in markets:
Stocks
S&P 500 futures fell 0.4% as of 7:48 a.m. New York time Nasdaq 100 futures fell 0.5% Futures on the Dow Jones Industrial Average fell 0.2% The Stoxx Europe 600 rose 0.1% The MSCI World Index rose 0.1% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1647 The British pound rose 0.2% to $1.3444 The Japanese yen rose 0.3% to 158.60 per dollar Cryptocurrencies
Bitcoin rose 1% to $95,014.01 Ether rose 2.6% to $3,292.89 Bonds
The yield on 10-year Treasuries declined three basis points to 4.15% Germany’s 10-year yield was little changed at 2.84% Britain’s 10-year yield declined two basis points to 4.38% Commodities
West Texas Intermediate crude rose 0.8% to $61.61 a barrel Spot gold rose 1.1% to $4,636.01 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Michael Msika, Levin Stamm and Isabella Ward.
©2026 Bloomberg L.P.
