U.S. stock futures traded close to unchanged on Wednesday as investors weighed continued enthusiasm surrounding artificial intelligence against escalating tensions in the Middle East. Energy prices pushed higher once again, while concerns about the global economic outlook intensified following a downgrade to growth forecasts from the OECD. Meanwhile, the Trump administration unveiled plans for new tariffs linked to forced-labor concerns, and SpaceX (NASDAQ:SPCX) was reported to be preparing for a blockbuster public listing that could value the company at approximately $1.75 trillion.
Futures Pause Near Record Highs
Wall Street futures were little changed in early trading after U.S. equities extended their record-setting run during the previous session.
At 03:31 ET, Dow Jones futures were down 109 points, or 0.2%, while S&P 500 futures slipped 0.1%. Nasdaq 100 futures were broadly flat.
The benchmark S&P 500 recorded its ninth consecutive record close on Tuesday, marking its longest winning streak of all-time highs since May 2025. The Dow Jones Industrial Average also reached a fresh closing record after rising 0.4%, while the Nasdaq Composite posted a modest gain.
All three major U.S. indices have now finished at record closing levels for five straight trading sessions, a feat not achieved since 2017.
Semiconductor Rally Continues to Drive Market Gains
Technology shares, particularly semiconductor companies, remained a major source of market strength.
An index tracking chipmakers climbed 5.9% during Tuesday’s session and has now gained more than 90% since reaching a low point in March 2026. Investors continue to bet on substantial spending related to AI infrastructure, including advanced processors, data centres and networking equipment.
Among the standout performers was Marvell Technology (NASDAQ:MRVL), whose shares surged after Nvidia Chief Executive Jensen Huang suggested the company could become the “next trillion-dollar company.”
Market participants are also awaiting fresh economic data, including a survey of activity in the U.S. services sector and the latest private-sector employment report for May.
Middle East Conflict Remains in Focus
Investor sentiment was tempered by renewed military activity involving the United States and Iran.
According to Reuters, the U.S. military stated that Iranian aerial attacks targeting Kuwait, Bahrain and other locations were either intercepted or unsuccessful. Iranian state media, however, reported that the Islamic Revolutionary Guard Corps had struck the headquarters of the U.S. Fifth Fleet in Bahrain in response to an American attack on a communications installation south of Qeshm.
The latest developments have reduced expectations that a resolution to the conflict is imminent, despite President Donald Trump maintaining that diplomatic discussions between Washington and Tehran remain active.
OECD Warns of Growing Economic Risks
The prolonged conflict has increased concerns about its impact on global growth, prompting the Organisation for Economic Co-operation and Development (OECD) to lower its economic forecasts.
The OECD warned that a continued disruption to energy markets could significantly weaken economic activity worldwide. Chief Economist Stefano Scarpetta noted that under a more severe scenario, shipping disruptions could persist into next year and potentially push some economies close to recession or into outright contraction.
Oil Prices Rise as Hormuz Concerns Persist
Inflation remains a major concern as higher energy costs continue to feed into the global outlook.
The OECD estimated that, under a worst-case scenario, inflation could increase by an additional 0.4 percentage points in 2026 and by 1.3 percentage points in 2027.
Much of this concern centres on the Strait of Hormuz, a critical shipping route off Iran’s southern coast that previously handled around one-fifth of global oil and liquefied natural gas flows before the conflict erupted in late February.
As prospects for a peace agreement remain uncertain, markets increasingly expect disruptions to tanker traffic to continue, potentially supporting higher oil prices and adding pressure on central banks to maintain tighter monetary policies.
Brent crude futures rose 2.0% to $97.93 per barrel. Although prices remain below recent highs above $100, they continue to trade well above levels seen before the conflict began.
Washington Proposes New Forced-Labor Tariffs
Trade policy also returned to the spotlight after the Trump administration proposed broad new tariffs on imports from 60 economies.
The measures follow investigations conducted under Section 301 of the Trade Act, which concluded that these countries had not adequately prevented the import of goods produced through forced labor. U.S. officials argued that these practices placed American businesses and workers at a disadvantage.
“The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable,” said U.S. Trade Representative Jamieson Greer.
Under the proposal, economies that already maintain forced-labor import restrictions, have committed to introducing them through trade agreements, or operate limited bans would face additional tariffs of 10%.
SpaceX Reportedly Targets $1.75 Trillion IPO Valuation
In corporate news, SpaceX (NASDAQ:SPCX) is reportedly preparing one of the largest public offerings in history.
Reuters reported that the aerospace and satellite company plans to raise approximately $75 billion by selling around 555.6 million shares at a price of $135 each. The transaction would imply a valuation of roughly $1.75 trillion.
The offering is expected to consist entirely of newly issued shares, according to separate Reuters reporting. The IPO roadshow is anticipated to begin on Thursday, while pricing details could be finalized as early as Wednesday.
SpaceX is expected to lead a wave of major technology listings, with artificial intelligence companies OpenAI and Anthropic also widely expected to pursue public offerings in the coming months.