Stock market today: Dow, S&P 500, Nasdaq futures slip as Trump mulls US strikes on Iran
US stock futures edged lower Thursday evening as investors weighed the possibility of direct US military involvement in the Israel-Iran war. President Trump on Thursday introduced a self-imposed two week time limit on his decision to enter the conflict, adding another layer of uncertainty to an already cautious market.
Dow Jones Industrial Average futures (YM=F) were down over 150 points, or 0.4%, while S&P 500 (ES=F) and Nasdaq 100 (NQ=F) futures each dipped about 0.3%. Markets were closed Thursday in observance of Juneteenth, offering investors a brief pause as global headlines grew more volatile.
Tensions between Israel and Iran remain elevated, with markets on edge over the possible US involvement. The White House press secretary, in a message she said had been dictated by Trump, said a decision would come within two weeks.
The geopolitical unease continues to send oil prices higher. Brent crude (BZ=F) and West Texas Intermediate (CL=F) futures jumped roughly 3% on Thursday, with traders pricing in supply disruption risk should the Iranian-controlled Strait of Hormuz, a bottleneck for one-fifth of the world's oil trade, be blocked. Iran has been seen upping the rate of export for oil in the hopes of maintaining revenue for the country should issues in supply chains arise.
The latest developments come as Wall Street continues to digest comments from Federal Reserve Chair Jerome Powell. Speaking Wednesday after the Fed left interest rates unchanged, Powell reiterated that policymakers are not rushing to ease, saying rate decisions will remain "data-dependent." A majority of traders, according to CME Group, expect a rate cut by September's meeting.
Trump renewed his criticism of Powell on Thursday, accusing the central bank of costing the US 'hundreds of billions of dollars' by keeping rates elevated. Trump doubled down on the criticism with a personal attack, claiming of Powell: "He is truly one of the dumbest, and most destructive, people in Government."
Read more: The latest on Trump's tariffs
Looking ahead, investors will turn their attention to fresh economic data Friday morning, including the Philadelphia Fed's June manufacturing index and the Conference Board's Leading Economic Indicators for May.
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