U.S. Stock Futures Steady as Investors Weigh Inflation and Middle East Tensions

U.S. stock index futures were largely steady on Wednesday after a technology-led selloff rattled Wall Street in the previous session, as investors assessed the inflation outlook and rising geopolitical tensions in the Middle East. Brent crude prices climbed 1.1% to their highest level in three weeks amid uncertainty over the Strait of Hormuz. U.S. President Donald Trump said no talks were taking place with Iran and maintained that the strategic waterway remained open, contradicting Iran’s claim that it was closed to shipping.

Higher government bond yields also remained a concern for investors, with the 30-year U.S. Treasury yield holding near 5.28%, close to its highest level since 2007. The surge in yields weighed heavily on technology and semiconductor stocks on Tuesday, with the Philadelphia Semiconductor Index falling nearly 5%. Nvidia and other major growth stocks were subdued in premarket trading, while Marvell and Intel each slipped more than 1%. At 6:09 a.m. ET, Dow E-minis were up 0.02%, S&P 500 E-minis were down 0.04%, and Nasdaq 100 E-minis were 0.22% lower.

Investors are also awaiting minutes from the Federal Reserve’s July meeting for clues about the central bank’s policy direction, while earnings from major retailers including Target and TJX Companies are due before the opening bell. Walmart is scheduled to report on Thursday. Although traders still see the possibility of at least one 25-basis-point Fed rate hike by the end of 2026, expectations for a September hike have fallen following softer inflation data. Meanwhile, Estée Lauder shares jumped 6.8% after the cosmetics company forecast annual profit above Wall Street estimates, helped by stronger demand in China.

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