Stock market today: Dow, S&P 500, Nasdaq futures waver after rally as Iran war drags on
Why it matters: Geopolitical tensions are directly impacting global markets and tech infrastructure, forcing a re-evaluation of investment strategies.
- US stock futures for the S&P 500, Dow, and Nasdaq 100 slipped 0.3%, pausing after a sharp rebound.
- Oil prices for West Texas Intermediate and Brent crude jumped back above $90 and $101 a barrel, respectively, as fighting between Iran and the US-Israeli alliance continued, despite earlier retreats on de-escalation hopes.
- President Trump's claim of "very good and productive" discussions with Iran was pushed back by Iranian state media, stating no direct negotiations had taken place, leading to fading market optimism.
- Amazon Web Services (AWS) in Bahrain experienced disruptions due to drone activity, marking the second outage since the war began and raising questions about Big Tech's plans to establish the Middle East as a regional data center hub, according to Bloomberg and S&P Global.
- Constellation Energy Corp. CEO Joe Dominguez noted that Middle East tensions are shifting focus back to the US for critical infrastructure development, impacting prior expectations for significant data center build-outs in the region.
- Smithfield Foods (SFD) stock rose 4% premarket after raising its quarterly dividend by 25%.
- Gilead Sciences (GILD) stock edged higher after agreeing to acquire privately held biotech Ouro Me.
US stock futures wavered after a rally driven by hopes of de-escalation between Washington and Tehran, as conflicting reports emerged regarding direct negotiations and hostilities continued. Oil prices, initially retreating, rebounded sharply, reflecting ongoing tensions and the potential for prolonged conflict in the Middle East, which is also disrupting major tech companies' data center expansion plans in the region.
