Dow Jones, S&P 500, and Nasdaq 100 futures decline as geopolitical risks weigh on investor sentiment ahead of Fed policy signals.
US stock futures retreated in early European trading Wednesday, with the Dow Jones shedding 0.30% to 52,290, as escalating US-Iran tensions fueled risk aversion. S&P 500 and Nasdaq 100 futures fell 0.38% and 0.85%, trading near 7,520 and 29,070, respectively.
Wall Street closed higher Tuesday, led by chipmakers after strong export data from Taiwan and South Korea bolstered semiconductor demand. The Nasdaq surged 1.29%, while the S&P 500 and Dow Jones gained 0.89% and 0.74%. Despite the rally, geopolitical concerns overshadowed optimism.
Markets are pricing in a 69% chance of a 25-basis-point Fed rate hike in September, though policymakers are expected to hold rates steady in July. Iran’s military warned of expanded strikes if the US targets its nuclear facilities, adding to uncertainty.