U.S. strikes on Iran send Wall Street futures higher

Highlights

Dow and S&P 500 futures rose 0.1%, while Nasdaq 100 futures gained 0.3%.
The U.S. launched new strikes against Iran after earlier military action this week.
Oil prices remain a key market risk, with Brent trading near $95 a barrel.

Futures tied to the Dow Jones Industrial Average and the S&P 500 rose 0.1%, while Nasdaq 100 futures advanced 0.3%, according to Yahoo Finance. The move came after U.S. Central Command confirmed fresh attacks on Iranian targets, following earlier strikes tied to the downing of a U.S. Apache helicopter near the Strait of Hormuz.

Markets balance war risk and rate concerns

The overnight rise in futures followed a difficult session for U.S. stocks. On Wednesday, the S&P 500 dropped 1.6%, the Dow Jones Industrial Average fell 1.9% and the Nasdaq Composite lost 2%, as investors pulled back from high-growth technology shares and reassessed the impact of higher oil prices.

The conflict with Iran has kept energy markets volatile because of the threat to the Strait of Hormuz, one of the world’s most important routes for oil and liquefied natural gas. Brent crude traded near $95 a barrel after the latest U.S. strikes, while West Texas Intermediate also moved higher as traders watched for any Iranian response.

Inflation is making the market reaction more complicated. May consumer prices rose 4.2% from a year earlier, the highest reading since 2023, with energy prices driving much of the increase. That reinforced expectations that the Fed will be cautious about easing policy and may have to keep rates elevated if the oil shock spreads through transportation, food, and services.

Earnings and data keep traders cautious

Corporate news added another layer of uncertainty. Oracle reported stronger-than-expected quarterly results, but its shares fell after hours as investors focused on heavy AI-related spending and financing needs. The reaction showed that even solid earnings may not be enough to support tech valuations when borrowing costs and capital expenditures are rising.

Markets now turn to Thursday’s Producer Price Index report for another view of inflation pressure. Investors are also watching the expected market debut of SpaceX on Friday, which could test appetite for large technology and AI-linked listings at a time when geopolitical risk is high.

Futures signal resilience, not relief

The rise in futures points to market resilience, but not a clean return to risk-taking. A 0.1% gain in Dow and S&P 500 futures and a 0.3% rise in Nasdaq 100 futures are small moves compared with the scale of the risks facing investors.

For now, the equity market is treating the new U.S. strikes as a contained event rather than the start of a broader disruption. That could change quickly if oil breaks higher, shipping through Hormuz is further disrupted, or inflation data pushes the Fed closer to another rate increase.

Earlier, we reported that oil rises as the U.S. strikes Iran and Hormuz fears return.

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