Stock futures remained largely unchanged on Tuesday as investors were influenced by escalating tensions in the Middle East and increasing oil prices. They were also reviewing the minutes from the latest Federal Reserve meeting.
The Dow Jones Industrial Average futures dropped by 29 points, while both S&P 500 and Nasdaq 100 futures fell around 0.1%.
On Tuesday night, the U.S. launched significant strikes against Iran as a response to assaults on three commercial vessels in the Strait of Hormuz, according to U.S. Central Command. Earlier, in reaction to these attacks, the Treasury Department revoked permits that allowed Iran to market its oil globally. Consequently, West Texas Intermediate crude oil futures surged by over 2%, reaching above $72 per barrel.
Markets in the Asia-Pacific region were anticipated to open mostly lower on Wednesday.
The Nikkei Stock Average futures traded at 67,725, down from its last closing of 68,256.96, while the Australian S&P/ASX 200 index closed at 8,803.90, with futures at 8,743 indicating a decrease. Furthermore, Hong Kong’s Hang Seng Index futures were at 23,499, slightly up from the previous close of 23,496.89.
In the U.S., investors sold off stocks related to artificial intelligence in regular trading as rising oil prices impacted market sentiment. The Dow dropped more than 100 points after reaching a new intraday record. The S&P 500 decreased by 0.5%, with chipmakers leading the downtrend, falling 1.2%.
All eyes are now on the Federal Open Market Committee’s June meeting scheduled for 2 PM ET on Wednesday. This announcement is expected to shed more light on Federal Reserve Chairman Kevin Warsh’s initial policy meeting, during which officials held rates steady but hinted that future hikes might be necessary if inflation continues to rise.
“The FOMC minutes are expected to reveal insights since Mr. Warsh has been somewhat unclear in recent discussions,” noted Vital Knowledge founder Adam Crisafulli. “While Mr. Powell thoroughly described the meeting’s discussions, Mr. Warsh’s account may surprise with a hawkish tone.”
