Stock futures took a hit Sunday night, slipping after Wall Street's best week in months. Oil prices climbed, fueled by rising concerns over the ongoing U.S.-Iran conflict.

Futures Slip Following Robust Weekly Gains

Futures for the Dow Jones Industrial Average dropped 253 points, or roughly 0.5%, signaling a cautious start after last week's strong rally. The S&P 500 and Nasdaq-100 futures followed suit, falling 0.6% and 0.7%, respectively.

Last week was a turnaround for the major indexes. The S&P 500 notched nearly a 6% gain, snapping a streak of five straight weeks in the red and marking its best weekly jump since November. This Dow climbed about 3%, while the tech-heavy Nasdaq surged 4.4%, ending its own five-week skid.

Market Swings Amid Geopolitical Uncertainty

The week wasn’t easy. Traders dealt with big market swings as news about the U.S.-Iran conflict kept coming. Questions about how long the tensions might last and how they’d impact global markets kept investors on edge.

Sunday’s headlines only added fuel to the fire. Former President Donald Trump issued a stark warning via Truth Social, threatening strikes on Iran’s power plants and bridges if the Strait of Hormuz wasn’t reopened by Tuesday. "Tuesday will be Power Plant Day, and Bridge Day, all wrapped up in one, in Iran. There will be nothing like it!!!" he wrote.

Oil Prices Climb as Conflict Escalates

Oil futures reacted to these developments. West Texas Intermediate crude jumped nearly 2% to $113.53 a barrel, while Brent crude rose 1.3% to $110.44.

Since the Strait of Hormuz is key for global oil shipments, any threat to close it quickly shakes up energy markets.

When oil prices go up, businesses and consumers usually pay more. That pushes inflation higher, which worries policymakers and investors.

Jobs Report Adds Complexity

Monday’s market session will be the first chance for investors to digest last Friday’s March jobs report, delayed due to Good Friday market closures. The report showed the U.S. Economy added 178,000 jobs—far exceeding expectations of just 59,000.

At the same time, the unemployment rate dropped to 4.3% from 4.4%. But the drop was partly driven by fewer people actively looking for work, meaning the labor force participation rate fell.

Ryan Weldon, portfolio manager at IFM Investors, interpreted the data as a mixed signal. He said the strong rebound from February’s weak numbers might not fully reassure markets. "The layoff data ticked up for the first time in three months, and job openings remained lower than expected," he noted.

Weldon also pointed out that rising oil costs could push input prices higher, adding inflationary pressures that could make the Federal Reserve’s efforts to manage economic growth.

Looking Ahead: A Tense Start to the Week

Investors are walking a tightrope. After a tough stretch, the market wants to keep gains but has to deal with growing geopolitical risks and inflation. Oil prices over $110 a barrel don’t help.

Plus, the labor market shows signs of strain despite recent job growth. If layoffs increase or job openings stay low, consumer spending could slow, potentially dragging on the economy.

All eyes will be on how the U.S.-Iran situation unfolds and whether oil prices continue climbing. Those factors could shape Wall Street’s mood for the week ahead.

This week looks volatile as investors juggle worries about geopolitics, inflation, and jobs. Everyone will be watching the Strait of Hormuz and new economic reports for clues.