(RTTNews) – U.S. stocks look headed for a weak start on Wednesday amid an escalation in Middle East tensions following reported U.S. airstrikes on Iranian targets and the decision to revoke a sanctions waiver that had allowed Iran to sell oil globally.
Investors will be looking forward to the minutes from the Federal Reserve’s most recent policy meeting, for clues about the central bank’s future policy moves.
U.S. President Donald Trump declared at the NATO Summit that the Iran ceasefire “is over,” raising fears of a larger conflict with Iran and Strait of Hormuz disruptions.
U.S. futures are sharply lower. The Dow futures are down 1 percent, the S&P futures are lower by 0.7 percent, and the Nasdaq futures are down 1.05 percent.
Stocks closed notably lower on Tuesday despite attempting a recovery mid-way through the session. 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.
The slump by the Nasdaq came amid a sharp pullback by semiconductor stocks, with the Philadelphia Semiconductor Index plummeting by 4.7 percent.
In overseas trading, Asian stocks ended mostly lower on Wednesday, with tech shares coming under selling pressure amid concerns that the AI-fueled rally in chipmakers may be losing momentum.
Renewed U.S.-Iran tensions also weighed on sentiment after the U.S. carried out a fresh round of airstrikes on Iran, targeting more than 80 locations in response to Iranian attacks on three commercial vessels in the Strait of Hormuz.
European stocks are down sharply today as renewed tensions in the Middle East and the resultant surge in oil prices and bond yields rendered the mood bearish. Political uncertainty in France added to the woes.
In commodities, West Texas Intermediate crude oil futures are up $3.86 or 5.48 percent at 74.30 a barrel. The contract rose to $75.30 a barrel earlier this morning.
Gold futures are down $84.90 or 2.04 percent at $4,072.50 an ounce.
