Wall Street futures plunged more than 1% Sunday evening as weekend US-Israel strikes against Iran sparked risk aversion. The attacks killed hundreds including Supreme Leader Ayatollah Ali Khamenei, while Iran retaliated against Israel and Middle Eastern nations. Markets fear all-out war as the conflict threatens the Strait of Hormuz, which handles 20% of global oil consumption.

President Trump vowed operations against Iran will continue until all "objectives are achieved" after three American service members were killed. The development marked a major escalation in Washington-Tehran tensions, especially as recent nuclear enrichment negotiations failed. Oil prices surged on concerns the vital shipping channel could be disrupted.

Technology stocks bore the brunt of Wall Street's February losses, with the NASDAQ dropping over 3%. The S&P 500 shed 0.9% while the Dow remained flat. AI-related disruptions and sticky inflation fueled concerns the Federal Reserve will keep interest rates unchanged longer, while Supreme Court rulings on Trump's tariff agenda added market uncertainty.