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Equity Futures Mostly Rise as Markets Assess Renewed Middle East Tensions

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Equity Futures Mostly Rise as Markets Assess Renewed Middle East Tensions

US equity markets were mostly pointing higher before the opening bell Thursday as traders weighed rising tensions between Washington and Iran.

S&P 500 futures ticked up 0.1% and the Nasdaq rose 0.6% in premarket activity, while the Dow Jones Industrial Average edged down 0.2%. The Dow finished Wednesday trading with its sharpest single-day decline in four weeks. The S&P also closed lower, while the Nasdaq was up.

The US Central Command said Wednesday its forces completed another round of strikes against Iran to "further degrade" its ability to attack commercial shipping through the Strait of Hormuz. The US struck Iran earlier in the week after Tehran attacked three tankers that crossed the crucial waterway.

US President Donald Trump said Wednesday he was no longer interested in negotiating with Iran, saying he believed the recent memorandum of understanding signed between the two countries to end their war was over.

West Texas Intermediate crude oil nudged 0.4% higher to $73.80 a barrel before the open Thursday, while Brent gained 0.5% to $78.41.

"The latest escalation in US-Iran military tensions this week raises new risks," ING Bank said in a report. "Vessels transiting the Strait of Hormuz remain well below pre-war levels, (and) recent developments show that safe passage of vessels is still an issue facing the market."

On Wednesday, minutes from the Federal Reserve's June policy meeting showed that central bank officials held diverging views on the appropriate path of interest rates. At that meeting, the Federal Open Market Committee unanimously decided to maintain the policy rate steady for the fourth consecutive time.

US Treasury yields were higher in premarket action Thursday, with the 10-year rate increasing 1.8 basis points to 4.59% and the two-year rate rising one basis point to 4.20%.

Thursday's economic calendar has the weekly jobless claims bulletin at 8:30 am ET, followed by the existing home sales report for June at 10 am. New York Fed President John Williams is scheduled to speak at 9 am.

Shares of Broadcom (AVGO) added 1.6% pre-bell after closing Wednesday with a 4.8% rise, as Apple (AAPL) confirmed the semiconductor manufacturer will produce chips to be used in the iPhone maker' products in a deal likely worth more than $30 billion.

Nvidia (NVDA) inclined 0.1%, while Arista Networks (ANET) advanced 1.3%.

PepsiCo (PEP) declined 1.3%, as the beverage and snacking giant reported its latest quarterly results early Thursday. Simply Good Foods (SMPL) also posts its earnings pre-bell, while WD-40 (WDFC) is slated to announce its results after the markets close.

Gold rose 0.8% to $4,114 per troy ounce, while bitcoin traded up 1% at $62,784.

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