US stock futures faltered on Wednesday as investors monitored latest developments in the Iran war fallout and braced for the latest inflation report to help shape expectations for the economy and Federal Reserve policy.
Contracts on the S&P 500 (ES=F) and the Nasdaq 100 (NQ=F) were both roughly 0.1% lower. Dow Jones Industrial Average futures (YM=F) slipped 0.2%, after stocks closed Tuesday’s volatile session little changed.
Worries about the knock-on effects from the Iran war have dominated markets this week, spurring oil market volatility that has reverberated through stocks. The UK Navy said three vessels came under fire in the Strait of Hormuz on Wednesday morning, a sign the key conduit for crude supply continues to be choked.
Oil prices rose, after swinging between gains and losses on Wednesday after the IEA reportedly proposed a record release of reserves. The aim is to ease the supply crunch that briefly pushed prices toward $120 per barrel. Futures for West Texas Intermediate (CL=F) and Brent (BZ=F) crude were both up well over 2% at last check, trading above $85 and $90, respectively.
Meanwhile, Wednesday brings the first of two highly anticipated inflation readings due this week. February’s Consumer Price Index report is set for release at 8:30 a.m. ET, followed by January’s Personal Consumption Expenditures index on Friday. The data is expected to provide insight into inflation trends and the broader health of the US economy, particularly as recent indicators suggest the labor market may be losing some momentum.
In earnings, Oracle (ORCL) shares surged after the company on Tuesday beat expectations and announced an upbeat outlook. Adobe (ADBE) and Dollar General (DG) highlight the rest of the week on Thursday’s docket.
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