U.S. stock futures took a dip on Wednesday night following President Trump’s remarks about the ongoing conflict in Iran.
Specifically, S&P 500 futures dropped by 0.8%, while Nasdaq 100 futures fell by 1%. Additionally, futures tied to the Dow Jones Industrial Average decreased by 352 points, roughly 0.8%.
During a speech that night, President Trump described the United States as being “very close” to concluding the Iran war, yet he emphasized that the U.S. would take severe action against Iran. He further stated, “We’re going to spend the next two to three weeks returning them to their original Stone Age status.”
The president’s comments led to a decrease in stock futures while simultaneously causing a spike in oil prices. West Texas Intermediate Crude Oil Futures saw a recent rise of 3.5%, exceeding $103 per barrel, and Brent crude futures climbed over 4%, reaching above $105. At one point, Brent even momentarily hit $106 per barrel.
Earlier in the day, all major indexes had surged as investors became hopeful about a possible end to the U.S.-Iran war. The S&P 500 and Nasdaq Composite saw gains of 0.72% and 1.16%, respectively, while the Dow increased by 224.23 points, or 0.48%.
In social media posts, President Trump indicated that Iran’s president had requested a ceasefire, but he stated that the U.S. would only consider this if the Strait of Hormuz was “open, free and passable.”
This update followed an earlier statement from the president, who shared on Tuesday that he anticipated U.S. troop withdrawal from Iran within “two to three weeks.”
Commenting on the broader economic implications, Sebastian Page, the Chief Investment Officer at T. Rowe Price, remarked on CNBC that while the economy seems robust, there are signs of a potential growth shock looming. He expressed concern that inflation may not stabilize or return to normal levels soon, as the macroeconomic landscape is evolving slowly.
With Good Friday approaching, Thursday marks the last trading day of the shortened week. Traders are expected to pay close attention to the new jobless claims for the week ending March 28, along with the March employment data set to be released the following day.
