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US stock futures moved lower late Wednesday as investors grappled with rising oil prices following a second straight mostly down day on Wall Street.
Futures tied to the Dow Jones Industrial Average (YM=F) dropped around 0.6%. Contracts linked to the S&P 500 (ES=F) and Nasdaq 100 (NQ=F) both also lost around 0.6%.
Energy markets continue to be roiled by the fallout from the escalating conflict between the US, Israel, and Iran, with tensions rising after US forces reportedly sank 16 Iranian vessels suspected of laying mines near the Strait of Hormuz. Tanker traffic across the region has been effected following attacks on two tankers in the Iraq Ports loading area, leading to the closure of Iraqi ports. President Trump said Wednesday that the US is seeking to “finish the job” in the immediate future.
Crude prices continued to jump sharply, with both West Texas Intermediate (CL=F) crude and Brent (BZ=F) crude rising above $90 in overnight trading after both settling Wednesday more than 4% higher. The rally came despite an announcement from the International Energy Agency that member countries would release a record amount of roughly 400 million barrels of oil.
Investors are also watching several economic releases after receiving the first of two inflation readings on Wednesday. February’s Consumer Price Index showed consumer prices rose 0.3% over the previous month and 2.4% year over year, in line with expectations. The latest reading of the Personal Consumption Expenditures Price Index, the Federal Reserve’s preferred inflation gauge, arrives Friday.
In earnings, Adobe (ADBE) and Dollar General (DG) highlight Thursday’s docket, reporting after the market close.
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