US stock futures retreated on Thursday as oil prices pressed higher amid signs the Iran war is widening across the Middle East to further threaten disruption to energy supplies.
Dow Jones Industrial Average futures (YM=F) were down 0.5%, following a second straight mostly down day on Wall Street. Contracts on the S&P 500 (ES=F) and Nasdaq 100 (NQ=F) both fell 0.4%, as stocks pared earlier morning losses of about 1%.
Energy markets continue to be roiled by the fallout from the escalating conflict between the US, Israel, and Iran, after President Trump said Wednesday that the US is seeking to “finish the job” in the immediate future. Tanker traffic across the region has been effected following attacks on two tankers in the Iraq Ports loading area, leading to the closure of Iraqi ports.
Crude prices jumped, with both West Texas Intermediate (CL=F) crude and Brent (BZ=F) crude rising above $100 in overnight trading, before retracing some losses early Thursday morning. The rally came despite an announcement from the International Energy Agency that member countries would release a record amount of roughly 400 million barrels of oil.
Investors are also watching several economic releases after receiving the first of two inflation readings on Wednesday. February’s Consumer Price Index showed consumer prices rose 0.3% over the previous month and 2.4% year over year, in line with expectations. The latest reading of the Personal Consumption Expenditures Price Index, the Federal Reserve’s preferred inflation gauge, arrives Friday.
In earnings, Adobe (ADBE) and Dollar General (DG) highlight Thursday’s docket, reporting after the market close.
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