Dow, S&P 500, Nasdaq futures plunge after US strikes on Iran
US stock futures pulled back on Wednesday ahead of the release of a key inflation reading, after the United States and Iran exchanged strikes that dampened hopes for a Middle East peace plan, News.Az reports, citing Yahoo Finance.
Dow Jones Industrial Average futures (YM=F) slid 0.3%, while futures on the broad benchmark S&P 500 (ES=F) fell 0.4%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) declined 0.6%.
In a post on X, the United States Central Command confirmed that US forces launched “self-defense” strikes against Iran.
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Meanwhile, Iranian media reported that Qeshm Island in the Strait of Hormuz had been attacked with around six explosions, according to Bloomberg.
Tensions between the US and Iran escalated again after a US Apache helicopter was downed on Monday near the Strait of Hormuz. On Tuesday, Donald Trump said Iran had attacked the helicopter and vowed a response.
Stocks closed mixed on Tuesday as investors rotated out of the AI trade amid concerns that a prolonged conflict with Iran could force the Federal Reserve to raise interest rates in response to rapidly rising prices.
Investors will receive further insight into the situation on Wednesday with the release of May’s CPI report. Analysts expect the report to show prices rising again, which would increase bets on a rate hike later this year.
On Wednesday after the closing bell, Oracle (ORCL) is scheduled to report earnings. Investors will focus on details of its cloud business, which includes OpenAI as a customer, amid ongoing fluctuations in the AI trade.
The main event of the week is expected on Friday, with the anticipated IPO of Elon Musk’s SpaceX. The company’s debut is expected to mark the largest public offering in history.
By Nijat Babayev
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