Market Update: Futures Rise Amid Geopolitical Tensions
On the floor of the New York Stock Exchange, traders were busy during the morning hours of July 8, 2026.
Early Thursday saw a slight uptick in S&P 500 futures, which rose by 0.13%. Meanwhile, futures for the Dow Jones Industrial Average gained 70 points, equating to around 0.1%. The Nasdaq 100 futures also saw an increase of 0.1%.
In Asia, the Korean Kospi experienced a significant bounce back, climbing 2.88% after a recent dip into bear market territory. The smaller-cap Kosdaq did even better with a gain of 3.67%. Japan’s Nikkei Stock Average was up 1.88%, while TOPIX gained 0.36%. However, Australia’s S&P/ASX 200 index dropped by 0.69%.
Hong Kong’s Hang Seng Index slightly increased by 0.16%, while China’s CSI300 index remained flat.
The U.S. Central Command reported on Wednesday that a new offensive against Iran has commenced, following Iranian attacks on commercial shipping in the strategically crucial Strait of Hormuz. In response, West Texas Intermediate Crude Oil Futures rose nearly 1%.
Earlier, President Trump suggested he might be losing interest in pursuing a deal with Iran, declaring that the ceasefire is “over” after a wave of new attacks in the region.
Mason Mendez, a global real estate analyst at Wells Fargo Investment Institute, expressed skepticism about the quick return of Persian Gulf exports, noting that low global reserves and reduced supply buffers could heighten risks that drive up oil prices even further, regardless of whether talks resume.
In standard trading, the Dow dropped by 576.76 points, equivalent to a 1.1% decline. The S&P 500 fell by 0.28%, impacted by rising oil prices. On a positive note, the Nasdaq Composite gained 2%, boosted by strong performance from Nvidia and other technology stocks.
Investors are increasingly worried that soaring energy costs could reignite inflation, leading the Federal Reserve to keep interest rates elevated longer than anticipated. Minutes from the Fed’s June meeting indicated hesitation to cut rates until there’s clear evidence that inflation is sustainably under control.
Looking ahead to Thursday, the market will be watching the weekly unemployment claims report at 8:30 a.m. ET, along with the report on existing home sales at 10 a.m. ET. Additionally, PepsiCo is set to announce its earnings before the market opens.
Mendez commented, “As we head into Thursday, oil prices are likely to be the primary concern. While geopolitical tensions might create some immediate risk-averse sentiment, strong equity returns and ongoing strength in AI could still drive the S&P 500 toward its end-of-year target range of 7,800 to 8,000.”
