U.S. stock index futures rebounded on Thursday as global markets and oil prices steadied after fresh U.S. strikes on Iran reignited geopolitical anxiety and threatened to stall efforts to end the four-month conflict.
Market Reaction
The U.S. military said on Wednesday it had launched new strikes on Iran to keep the Strait of Hormuz open to shipping. Iran responded with attacks on Kuwait and Bahrain, deepening a confrontation that risks derailing already fragile ceasefire efforts.
Oil futures fell about 1% on Thursday, easing from two-week highs hit after President Donald Trump said he believed an interim ceasefire with Iran was “over.”
At 5:27 a.m. ET, Dow E-minis were up 14 points, or 0.03%, and S&P 500 E-minis were up 14 points, or 0.19%. Nasdaq 100 E-minis were up 186 points, or 0.63%.
Economic Impact
The renewed tensions forced stock investors to reassess recent optimism that an eventual resolution could support risk assets. The S&P 500 and Dow ended Wednesday’s session lower, while the Nasdaq eked out a marginal gain.
While lower crude prices on the day helped steady sentiment, investors remained alert to the inflationary risk from any prolonged disruption to Middle East energy routes.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
