U.S. stock futures suggest a weaker start to Thursday’s session, with markets likely to face pressure after the major indices finished largely unchanged for two consecutive days.
A renewed surge in crude prices may weigh on investor sentiment, as oil extends its rebound following Tuesday’s sharp decline.
U.S. crude for April delivery has jumped $6.12, or 7%, to $93.37 per barrel, though prices remain well below Monday’s peak near $120 per barrel.
Global benchmark Brent crude for May delivery is also up around 7%, after briefly climbing above the $100-per-barrel mark earlier in the session.
The latest rally in oil prices follows reports that three additional foreign vessels were struck in the Persian Gulf overnight, intensifying concerns about shipping through the strategically important Strait of Hormuz.
Energy Secretary Chris Wright told CNBC in an interview earlier today that the U.S. Navy is “not ready” to escort oil tankers through the strait.
Stocks showed little clear direction during Wednesday’s trading session, continuing the subdued pattern seen the previous day. Major indexes spent much of the session fluctuating around the unchanged mark.
By the close, the benchmarks finished mixed for the second consecutive day. The Nasdaq rose slightly by 19.03 points, or 0.1%, to 22,716.13. Meanwhile, the S&P 500 slipped 5.68 points, or 0.1%, to 6,775.80, and the Dow Jones Industrial Average dropped 289.24 points, or 0.6%, to 47,417.27.
The uneven trading activity on Wall Street suggested investors were pausing after several sessions marked by notable volatility.
Recent market swings have largely been driven by large moves in oil prices, which are climbing again after plunging on Tuesday.
Crude has regained momentum after the United Kingdom Maritime Trade Operations reported that three ships were hit by projectiles near Iran’s coastline, increasing concerns about safe passage through the Strait of Hormuz.
Additional reports indicating that Iran may be attempting to place mines in the strait have further heightened concerns about shipping through the critical waterway.
At the same time, investors appeared to pay limited attention to fresh inflation data from the U.S. Labor Department showing that consumer prices rose in February broadly in line with economists’ expectations.
According to the report, the consumer price index increased 0.3% in February after rising 0.2% in January, matching forecasts.
Excluding food and energy, core consumer prices climbed 0.2% in February following a 0.3% increase the previous month, also in line with expectations.
The data also showed that the annual rate of inflation for overall consumer prices held steady at 2.4%, while the annual core inflation rate remained unchanged at 2.5%.
Most sectors recorded only modest movements during the session, contributing to the overall subdued market performance.
Energy stocks, however, surged alongside rising crude prices, pushing the NYSE Arca Oil Index up 3.5%.
Computer hardware companies also posted notable gains, lifting the NYSE Arca Computer Hardware Index by 1.5%.
In contrast, gold mining shares declined in tandem with falling gold prices, pulling the NYSE Arca Gold Bugs Index down 2.3%.
Housing-related stocks also moved lower amid rising Treasury yields, with the Philadelphia Housing Sector Index dropping 1.6%.