US Stock Futures Decline Amid Concerns Over Prolonged Iran Conflict
US Stock Futures Decline After President Trump's Iran War Address
US stock futures slipped on Thursday after President Donald Trump indicated that the Iran war in the Middle East would continue for an additional 2-3 weeks. Futures tied to the Dow Jones Industrial Average dropped 352 points, or approximately 0.8%, while S&P 500 futures declined 0.8%. Nasdaq 100 futures plummeted 1%.
In a televised address outlining the latest updates in the US-Iran war, President Trump stated that the US would "hit" Iran "extremely hard" in the next 2-3 weeks, as "core strategic objectives are nearing completion." Trump also emphasized that US forces will "finish the job" in Iran soon.
The address by President Trump had a significant impact on the global markets, with crude oil prices jumping as hopes of a swift resolution to the war were dampened. Concerns linger about energy flows through the Strait of Hormuz.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
| Market | Price Movement |
|---|---|
| Brent Crude Futures | Surged 4.8% to $106.04 per barrel |
| US West Texas Intermediate Crude Futures | Rallied 4.2% to $104.29 per barrel |
The dollar advanced against major currencies as Trump's address on Iran shattered hopes for a possible ceasefire in the Middle East conflict. The dollar index, which measures the greenback against a basket of currencies, climbed to a high of 99.925 after the speech, trading up 0.3% at 99.861. The euro stood at $1.1554 and the sterling fetched $1.3254, both down roughly 0.3% versus the dollar. The Japanese yen traded weaker at 159.25.
In contrast to the previous day's performance, gold prices reversed gains and slipped more than 1%, snapping a four-day winning streak, after Trump's speech on the Iran war. Spot gold prices fell 1.3% to $4,694.48 per ounce, while US gold futures declined 1.9% to $4,723.70.
The US stock market ended higher on Wednesday, amid signs of an end to the Iran war. However, on Thursday, the market reversed its trend. The Dow Jones Industrial Average rallied 0.48% to 46,565.74 on Wednesday, while the S&P 500 gained 0.72% to end the session at 6,575.32. The Nasdaq closed 1.16% higher at 21,840.95. On Thursday, the market reacted negatively to President Trump's address, with futures tied to these indices declining.
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
| Stock | Price Movement |
|---|---|
| Nvidia | Rose 0.75% |
| AMD | Gained 3.33% |
| Alphabet | Advanced 2.79% |
| Tesla | Rallied 2.79% |
| Intel | Spiked 8.8% |
| Intuitive Machines | Jumped 9% |
| Planet Labs | Stock surged 10% |
| Nike | Slumped 15.5% |
Investor Takeaway
US stock futures may decline due to concerns over the prolonged Iran conflict.
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