U.S. stock futures experienced a decline on Thursday night due to escalating global tensions. Futures tied to the Dow Jones Industrial Average dropped by approximately 677 points, or nearly 1.6%. S&P 500 futures fell by 1.7%, while Nasdaq 100 futures decreased by 1.8%. This drop occurred as reports emerged about heightened geopolitical risks. Two U.S. officials confirmed there was no U.S. involvement in the situation, according to NBC News. Oil prices surged, with Brent futures rising over 7% and West Texas Intermediate crude futures climbing by 7%.
In Thursday’s regular session, the 30-stock Dow and the Nasdaq Composite each gained 0.2%. The broader S&P 500 index added nearly 0.4%, inching closer to its all-time high from February, being less than 2% away. The producer price index for May contributed positively, showing a gain of 0.1% from the previous month, cooler than the 0.2% increase economists expected. Bond yields also softened, boosting investor sentiment. Earlier in the week, the May consumer inflation report came in lower than anticipated.
Despite this, concerns over the White House’s tariff policy capped market gains. Treasury Secretary Scott Bessent indicated that the Trump administration might extend the current 90-day tariff pause beyond July 9 for key trading partners if they demonstrate ‘good faith’ in negotiations. However, President Donald Trump raised fears of unilateral tariffs, stating that letters would be sent to countries within a fortnight.
Stocks are on track for solid gains this week, with the S&P 500 up nearly 0.8% and the Nasdaq Composite advancing by 0.7%. The Dow is set for a 0.5% increase. All three indices are poised for their third consecutive positive week. Investors await the preliminary June reading of the University of Michigan’s consumer sentiment report.
— new from CNBC
