US futures fall on Wednesday

US stock index futures fell early Wednesday as investors weighed an escalating Middle East conflict and rising oil prices ahead of fresh economic data expected to shape the interest rate outlook.

Brent crude rose nearly 2 per cent, extending weekly gains to more than 13 per cent, although prices eased from earlier highs after US President Donald Trump ordered an insurance guarantee for Gulf shipping and said the US Navy could escort tankers through the Strait of Hormuz, a critical route that carries about a fifth of global oil and liquefied natural gas flows.

Heightened tensions have driven demand for safe-haven assets, with gold up 1 per cent, the dollar hovering near a three-month high and the US 10-year Treasury yield rising for a third straight session. US and Israeli forces have continued strikes on Iran, while Iranian drones and missiles targeted Gulf oil facilities and US embassies in Saudi Arabia and Kuwait.

At 02:26 a.m. ET, Dow E-minis fell 144 points, or 0.3 per cent, while Nasdaq 100 E-minis dropped 156.75 points, or 0.63 per cent. On Tuesday, the S&P 500 slid 0.9 per cent, breaking below its 100-day moving average for the first time since November 20, while the Dow lost 0.8 per cent and the Nasdaq declined 1 per cent.

Investors are now focused on upcoming data, including the Federal Reserve’s Beige Book, ADP employment figures, and the final reading of S&P’s composite PMI, as persistent inflation pressures reinforce expectations that the US central bank will keep borrowing costs unchanged for now.

Attribution: Reuters