Dow, S&P 500, and Nasdaq 100 futures climb ahead of US open despite geopolitical tensions and Fed rate hike bets.
Dow Jones futures rose 0.53% to above 50,900 in European trading hours, while S&P 500 futures gained 0.54% toward 7,550 and Nasdaq 100 futures advanced 0.73% past 29,750. The moves came despite US military strikes in southern Iran targeting missile sites and vessels, which raised caution among traders.
Markets remained focused on diplomatic efforts to secure a peace deal, with reports suggesting negotiations were progressing. However, concerns over energy-driven inflation and Fed policy kept sentiment measured. Traders now price a 41% chance of a 25-basis-point Fed rate hike by year-end, per CME FedWatch data.
Attention shifts to upcoming PCE inflation data for further clues on the Fed’s next move amid lingering geopolitical risks.