Stock futures slip after U.S. initiates another round of attacks against Iran: Live updates

S&P 500 futures were near flat Wednesday evening after the market sold off on renewed U.S.-Iran tensions and a jump in oil prices.

S&P 500 futures were marginally lower. Futures tied to the Dow Jones Industrial Average were down 28 points, or less than 0.1%. Nasdaq 100 futures advanced 0.3%.

In Asia, South Korea’s Kospi surged on Thursday after falling into a bear market the day before. It advanced 2.92% at open, while the small-cap Kosdaq gained 1.28%. Japan’s Nikkei 225 added over 1.17% and the Topix was 0.20% higher. Australia’s benchmark S&P/ASX 200 was 0.83% lower.

The U.S. launched fresh strikes on Iran in response to Tehran’s attacks on commercial shipping in and around the Strait of Hormuz, U.S. Central Command said Wednesday afternoon. West Texas Intermediate crude futures were last up nearly 1%.

Earlier in the day, President Donald Trump said he may no longer be interested in negotiating a deal with Iran. Prior to that, he said that the ceasefire between the U.S. and Tehran is “over” after another wave of attacks in the Middle East.

“Any assumption of a swift return to normalized Persian Gulf exports is certainly being challenged,” said Mason Mendez, global real assets analyst at Wells Fargo Investment Institute. “Given the reduced supply buffer of already low global reserves and inventories, any further escalations are likely to re-enforce a higher geopolitical risk premium in oil prices – even when negotiations eventually resume.”

In regular trading, the Dow dropped 576.76 points, or 1.1%, while the S&P 500 fell 0.28%. Both indexes were weighed down by a spike in oil prices. The Nasdaq Composite, however, rose 0.2%, aided by an advance in Nvidia and other chip stocks.

Investors feared that rising energy costs could reignite inflation, forcing the Federal Reserve to keep interest rates elevated for longer than previously expected. Minutes from the Fed’s June meeting underscored that uncertainty, revealing a divided central bank reluctant to cut rates until officials see clearer evidence that inflation is moving sustainably toward its target.

On Thursday, traders will watch for the weekly jobless claims report at 8:30 a.m. ET and existing home sales at 10 a.m. PepsiCo will also report earnings before the bell.

“Heading into Thursday, oil prices likely will be top of mind,” Mendez said. “These renewed geopolitical risks could fuel near-term risk-off sentiment, however, trends of strong equity earnings momentum and ongoing AI strengths will likely continue to drive the S&P 500 Index towards our year-end target range of 7,800 to 8,000.”