US stock futures fell with investors on edge as Israel and Iran continued to trade strikes against a backdrop of shifting US trade policy and stubborn interest rates.

Degrading Iran's nuclear and military capabilities is good for geopolitical stability, which would be good for markets, Eisman said.

Stocks are trading down by about 0.5%. As is gold. What's rallying? Oil! "Black Gold" is up more than 1.5% on worries that a resolution in the Middle East might take longer than it seemed just yesterday.

Indeed, stocks have proven to be extremely resilient to geopolitical uncertainty over the last century. Over 25 major military events and conflicts including the Pearl Harbor attack, shooting of Ronald Reagan and the start of the Ukraine war, the S&P 500 has declined an average of 1.1%, according to data from LPL Financial.

US stocks experienced a slight dip in early trading due to disappointing retail spending data and escalating geopolitical tensions in the Middle East.

U.S. stock futures are lower after President Donald Trump abruptly left the Group of Seven summit in Canada. Trump had earlier urged everyone to immediately evacuate Tehran and reiterated that Iran should have signed a nuclear deal with the United States.

The Nifty 50 is trading at 20.9x one-year forward P/E — slightly below the long-term average — but small- and mid-cap stocks appear overheated. Emkay Global notes that 38% of BSE200 stocks now trade above their 5-year average valuation,

At 8:12 am, the Gift Nifty futures were trading at 24,957. This points to a likely flat start for the Nifty50, which closed at 24,946.5 on Monday.