Global markets are on high alert as tensions between Israel and Iran escalate, sparking fears of a broader conflict in the Middle East. As a result, US stock futures are retreating, with the Dow Jones Industrial Average slipping 0.3% and the S&P 500 dipping 0.2%. The tech-heavy Nasdaq 100 is also down 0.1%. The market’s cautious tone comes as investors prepare for potential retaliation from Israel following a massive missile attack by Iran.
The geopolitical uncertainty is overshadowing hopes for US interest-rate cuts, which had previously buoyed the market. Meanwhile, oil prices are surging, with Brent crude and West Texas Intermediate futures up around 3% as traders worry about potential supply disruptions. The rise in oil prices could have implications for US inflation, which could disrupt the progress made by the Federal Reserve.
The ongoing US port strike and Middle East tensions are also raising concerns about supply chain disruptions and their impact on the US economy. Against this backdrop, investors will be closely watching the ADP private payrolls report due later today, which could influence expectations for Fed rate cuts.
In other news, Nike’s shares are taking a hit, down 5% in premarket trading after the company withdrew its full-year outlook due to disappointing first-quarter revenue. The company’s CFO warned that it has yet to turn a corner, sparking concerns about its future performance.
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