(RTTNews) – After ending the previous session mostly lower, stocks are likely to see further downside in early trading on Wednesday. The major index futures are currently pointing to a lower open for the markets, with the S&P 500 futures down by 0.6 percent.
Concerns about the re-escalation of the conflict in the Middle East are likely to weigh on Wall Street after President Donald Trump declared the U.S.-Iran ceasefire “over.”
“As far as I’m concerned, it’s over,” Trump told reporters at the NATO summit in Ankara, Turkey, calling negotiations with Iran a “waste of time.”
Trump’s comments have led to a surge by the price of crude oil, with U.S. crude oil futures spiking by more than 4 percent.
The jump in prices may lead to renewed concerns about the outlook for inflation and interest rates ahead of the release of the minutes of the Federal Reserve’s June monetary policy meeting later in the day.
Trump’s remarks came after U.S. Central Command said it completed a new round of offensive strikes against Iran, hitting over 80 targets in response to Iran’s latest attacks on commercial vessels transiting the Strait of Hormuz.
Iran’s Revolutionary Guards claimed they targeted U.S. military sites in Bahrain and Kuwait hours after the U.S. strikes.
After coming under pressure early in the session, stocks staged a recovery attempt in mid-day trading on Tuesday but moved back to the downside as the day progressed.
The major averages all finished the day in negative territory, with the tech-heavy Nasdaq showing a notable decline.
The Nasdaq tumbled 302.47 points or 1.2 percent to 25,818.69, the S&P 500 fell 33.58 points or 0.5 percent to 7,503.85 and the Dow dipped 130.76 points or 0.3 percent to 52,925.15.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Wednesday. Japan’s Nikkei 225 Index tumbled by 2.1 percent, while China’s Shanghai Composite Index slid by 0.5 percent.
The major European markets have also moved to the downside on the day. While the U.K.’s FSE 100 Index is down by 0.9 percent, the French CAC 40 Index and the German DAX Index are both down by 1.7 percent.
In commodities trading, crude oil futures are surging $3.14 to $73.58 a barrel after jumping $1.89 to $70.44 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $4,079.80, down $77.60 compared to the previous session’s close of $4,157.40. On Tuesday, gold slipped $10.10.
On the currency front, the U.S. dollar is trading at 162.47 yen compared to the 162.09 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.1403 compared to yesterday’s $1.1411.
