U.S. stock index futures pointed to a slightly lower opening on Wednesday, suggesting equities may retreat after ending the previous session with mixed and largely directionless trading.
A renewed rise in crude oil prices could weigh on investor sentiment. Oil for April delivery surged nearly 4% after plunging close to 12% during Tuesday’s trading session.
Crude prices rebounded following reports from United Kingdom Maritime Trade Operations that three vessels had been hit by projectiles off the coast of Iran, heightening concerns about shipping safety in the Strait of Hormuz.
Additional reports indicating that Iran may be attempting to lay mines in the Strait of Hormuz have further raised fears about disruptions to traffic through the critical energy shipping route.
On the economic front in the United States, new data from the Labor Department showed that consumer inflation increased in February broadly in line with economists’ expectations.
According to the report, the consumer price index rose 0.3% in February after advancing 0.2% in January, matching market forecasts.
Excluding food and energy costs, core consumer prices increased by 0.2% in February following a 0.3% rise in January, also in line with projections.
The report noted that annual inflation rates remained unchanged from the previous month, with overall consumer prices rising 2.4% year-on-year and core inflation holding at 2.5%.
After bouncing back from early losses to finish mostly higher on Monday, markets struggled to find clear direction on Tuesday. The major indexes fluctuated around the flatline for much of the day.
By the closing bell, the results were narrowly mixed. The Nasdaq edged up 1.16 points, or less than 0.1%, to 22,697.10. Meanwhile, the Dow slipped 34.29 points, or 0.1%, to 47,706.51, and the S&P 500 fell 14.51 points, or 0.2%, to 6,781.48.
Market volatility was partly driven by dramatic swings in oil prices. Crude for April delivery tumbled nearly 12% on Tuesday after climbing close to $120 per barrel earlier in the week.
Investors were also reacting to uncertainty surrounding the U.S. conflict with Iran following recent remarks by President Donald Trump.
Speaking at a press conference on Monday, Trump said the war with Iran could end “very soon,” though he did not outline a clear plan for how the conflict might conclude.
In a later post on Truth Social, the president warned that Iran would face retaliation “twenty times harder” if it attempted to disrupt oil flows through the Strait of Hormuz.
“We will take out easily destroyable targets that will make it virtually impossible for Iran to ever be built back, as a Nation, again — Death, Fire, and Fury will reign upon them — But I hope, and pray, that it does not happen!” Trump said.
Echoing the president’s confidence, Defense Secretary Pete Hegseth said during a press briefing earlier today that Iran is “badly losing,” although he added that the U.S. plans to carry out its “most intense day of strikes” in Iran later today.
Reflecting the subdued tone across the broader market, most major sectors posted only modest moves.
Software companies were among the weakest performers, with the Dow Jones U.S. Software Index falling 1.7%.
Shares of oil producers, natural gas companies and homebuilders also declined notably, while gold mining stocks rose strongly alongside gains in the price of the precious metal.