US equity futures were lower pre-bell Thursday as fresh US and Iranian strikes once again threatened the fragile ceasefire between the two nations, reducing optimism surrounding a potential peace deal.
Dow Jones Industrial Average futures were 0.2% lower, S&P 500 futures were down 0.3%, and Nasdaq futures were 0.5% lower.
The US military said it had fired on Iranian drones over the Strait of Hormuz and attacked a military site in the port city of Bandar Abbas, which is the second time in three days it has struck targets in Iran for what it called self-defense. Iran said it responded by launching an attack on an American air base in the region.
Traders observed the latest round of earnings, including those of several major Canadian banks. Royal Bank of Canada (RY) reported higher fiscal Q2 adjusted earnings and revenue, while Toronto-Dominion Bank (TD) posted increased fiscal Q2 adjusted earnings on lower revenue.
Oil prices were higher, with front-month global benchmark North Sea Brent crude up 3.1% at $95.06 per barrel and US West Texas Intermediate crude 3.2% higher at $91.48 per barrel.
The April core personal consumption expenditures price index, the Federal Reserve's preferred inflation gauge, scheduled for release at 8:30 am ET, is expected to increase 0.3%, which is the same as the prior month's gain, according to estimates compiled by Bloomberg. The April durable goods orders report is expected to show a 4.0% increase after a gain of 0.8% in the prior month.
Initial jobless claims are projected to have risen to 211,000 in the week ended May 23 from 209,000 in the prior week. The preliminary estimate for Q1 GDP is seen coming in at 2.0%, unchanged from the prior value.