Dow Jones futures fell sharply early Thursday, alongside S&P 500 and Nasdaq futures, as growing tensions between Israel and Iran weighed on investor sentiment. U.S. stock markets are closed Thursday in observance of the Juneteenth holiday.
The stock market ended Wednesday mixed. Former President Donald Trump hinted at involvement in the Israel-Iran conflict, saying he has “ideas” about whether the U.S. should engage. Reports suggest Trump is seriously weighing military action against Iran. Meanwhile, the Federal Reserve held steady on interest rates and reaffirmed its expectation for two rate cuts in 2025, though Fed Chair Jerome Powell emphasized there’s no rush to adjust policy.
Dow Jones Futures Today
- Dow Jones futures fell 0.6% relative to fair value.
- S&P 500 futures dropped 0.65%, and
- Nasdaq 100 futures declined 0.8%.
- Crude oil futures rose more than 1% amid geopolitical uncertainty.
Though U.S. markets are closed for the Juneteenth holiday, global exchanges remain active, and futures trading continues. It’s important to note that overnight futures activity doesn’t always predict how markets will open the following day.
Trump Weighs Military Action on Iran
According to The Wall Street Journal, Trump told advisors Tuesday night that he has approved plans for a potential military strike on Iran but is holding off on a final decision, hoping Tehran might abandon its nuclear ambitions. Bloomberg reported that a U.S. military response could come as early as this weekend.
On Wednesday, Trump gave mixed signals, saying he “may or may not” support targeting Iran’s nuclear facilities. Later, he reiterated he has “ideas” but has not made a “final decision.”
One possible option includes using U.S. bunker-busting bombs to target Iran’s heavily fortified Fordow nuclear site. The threat of force may also serve as leverage to extract concessions from Iran.
European and Iranian officials are expected to meet in Geneva on Friday for talks. Neither U.S. nor Israeli representatives will participate.
Federal Reserve Meeting Recap
As anticipated, the Federal Reserve left interest rates unchanged during its latest policy meeting. The Fed maintained its forecast for two rate cuts in 2025, while also revising its inflation outlook higher and growth expectations lower compared to March projections.
Fed Chair Jerome Powell noted that the labor market remains “solid” and that the Fed is “well positioned to wait” before initiating any rate adjustments.