US equity futures are under pressure this morning after geopolitical tensions erupted into military action in the Middle East. Israel launched airstrikes against multiple Iranian targets last night, including military and nuclear facilities. S&P futures were down 2.0% at their overnight lows but have cut those losses in half, currently down about 1.0%. Brent crude is the mirror image, as it surged above $78 (+13%) at its highs but has moved down from those levels, now up 8% to $75. The US Dollar is seeing some demand as the Dollar Index rises 0.5% and gaining against the Euro, Yen and Swiss Franc. Yields haven’t stirred too much overall. Treasuries strengthened initially but have moved lower, and yields are now up about 2bp across the curve. Energy and Defense names dominate the pre-market gainers, as expected. Travel, leisure and airlines are under the most pressure heading into the Open. Macro data is light today on this Friday the 13th, but the University of Michigan survey will be released later this morning.

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