Dow, S&P 500, Nasdaq futures dip as oil surge fuels inflation fears
US stock futures edged lower on Thursday as surging oil prices, driven by escalating attacks on key Middle East energy infrastructure, intensified inflation concerns on Wall Street.
Futures for the Dow Jones Industrial Average dipped 0.1%, following a sharp sell-off that pushed the index to its lowest close of the year, News.Az reports, citing foreign media.
Contracts tied to the S&P 500 and Nasdaq 100 also declined, falling 0.2% and 0.3%, respectively.
Oil markets saw significant volatility, with Brent crude jumping more than 10% to as high as $119 per barrel after Iran and Israel exchanged strikes on critical oil and gas facilities. US benchmark West Texas Intermediate crude rose more modestly, hovering around $96 per barrel. The surge in oil prices has heightened fears of a deeper economic fallout from the conflict.
Markets were already under pressure from rising inflation expectations flagged by the Federal Reserve, which has tempered hopes for interest rate cuts. While policymakers still signal the possibility of one cut this year, expectations are shifting toward a more cautious stance following hawkish remarks from Fed Chair Jerome Powell.
Investors are now awaiting fresh economic data, including weekly jobless claims and the Philadelphia Fed Manufacturing Index, due later on Thursday.
On the corporate side, Micron shares fell in premarket trading as concerns over its AI spending plans overshadowed strong earnings results. Alibaba stock also declined sharply after reporting a 67% drop in quarterly profit, highlighting ongoing challenges in delivering returns from its artificial intelligence investments.
News.Az
By Nijat Babayev
