Stock market today: Dow, S&P 500, Nasdaq futures slide amid inflation worries as Iran war sends oil surging
Why it matters: Geopolitical tensions are fueling inflation and dimming rate cut hopes, creating a volatile market for investors.
- Dow Jones Industrial Average futures fell 0.4%, continuing a trend that saw the blue-chip benchmark hit its lowest close this year.
- Brent crude futures surged as much as 10% to $119 a barrel after Iran and Israel exchanged attacks, intensifying global inflation concerns.
- Federal Reserve's hawkish stance and Chair Jerome Powell's comments have dampened expectations for interest-rate cuts, with markets betting policymakers will stand pat.
- Micron (MU) shares dropped premarket as heavy AI spending plans overshadowed strong earnings, while Alibaba (BABA) stock slid after a 67% plunge in quarterly profit underscored the urgent need to monetize its AI investments, as reported by Bloomberg News.
- Five Below (FIVE) stock rose 6% premarket due to higher quarterly profit and sales, citing increased customer footfall, and Align Technology Inc. (ALGN) stock also rose 6% after activist investor Elliott disclosed a significant stake.
US stock futures, including the Dow, S&P 500, and Nasdaq, are sliding amid escalating inflation fears fueled by a significant surge in oil prices following attacks on Middle East energy hubs. This comes as the Federal Reserve maintains a hawkish stance on interest rates, further dampening market sentiment despite some corporate bright spots.
