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US Equity Futures Fall Pre-Bell as US Threatens Iran's Trade Partners

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US equity futures were edging lower pre-bell Thursday as traders monitored the situation in the Middle East, with the US announcing further economic pressure on Iran and threatening its trade partners.

Dow Jones Industrial Average futures were 0.4% lower, S&P 500 futures were down 0.2%, and Nasdaq futures were 0.3% lower.

President Donald Trump said that Iran will be subject to economic warfare "on an unprecedented scale," while also threatening economic consequences on any country that assists or does business with the Middle Eastern nation. "Oil smuggling, swap lines, cash transfers, exchange houses, ship registries, front companies - It all needs to stop NOW," Trump said in a post on Truth Social.

Iran's Foreign Minister Seyed Abbas Araghchi in a post on X dismissed Trump's threat, calling it a diversion from America's challenges of "unprecedented debt & surging interest costs."

Traders assessed the latest round of earnings, with Walmart (WMT) posting higher fiscal Q2 adjusted earnings and revenue.

Oil prices were higher, with front-month global benchmark North Sea Brent crude up 2.9% at $94.26 per barrel and US West Texas Intermediate crude 3.2% higher at $87.11 per barrel.

The weekly jobless claims bulletin, slated for 8:30 am ET, is expected to show 210,000 new unemployment claims for the week ended Aug. 15, up from 209,000 in the prior week, according to estimates compiled by Bloomberg. The Philadelphia Fed's regional manufacturing index for August is seen coming in at 24.8, down from 41.4 posted previously.

July's leading indicators data is scheduled to be released 10 am ET.

What else is happening in Japan?

Japan

US Equity Markets End Higher as US Treasury Plans Expanded Long-Bond Buybacks

US equity indexes ended higher Wednesday after the Treasury Department said it would increase buybacks of long-dated US government debt.* Moderna (MRNA) shares almost tripled, the top gainer on the S&P 500, and Merck (MRK) gained 13%, the biggest increase on the Dow, after the companies said a late-stage trial of an experimental skin cancer treatment yielded positive topline results* Nebius Group (NBIS) shares fell 9.9%, the biggest drop on the Nasdaq, after the company said it plans to offer $4.5 billion of convertible senior notes in a private offering.* September West Texas Intermediate crude oil rose $0.48 to settle at $85.42 per barrel, while October Brent crude, the global benchmark, was last seen up $0.27 at $91.29.* US crude oil stocks, including the Strategic Petroleum Reserve, fell by 900,000 barrels in the week ended Friday, following an increase of 11.3 million in the previous week. Excluding SPR inventories, commercial crude oil stocks rose by 4.4 million compared with the gain of 17.4 million the week prior, and the 200,000 increase expected in a survey compiled by Bloomberg.* US mortgage applications fell by 0.4% in the week ended Friday with an increase in refinancing activity offset by declining home purchase applications, according to the Mortgage Bankers Association.

Dow JonesNasdaq CompositeS&P 500$MRK$MRNA$NBIS
Japan

US Equity Indexes Rise After Treasury Lifts Buyback Limit, Fed Minutes Show Most FOMC Participants Agreed to Hold Rates Steady at July Meeting

US equity indexes rose ahead of the close on Wednesday after the Treasury Department said it would increase buybacks of long-dated government debt to at least $4 billion per operation in September from $2 billion, and minutes of the July 28-29 meeting of the Federal Open Market Committee showed that most participants supported maintaining the federal funds rate at 3.50% to 3.75%.The Nasdaq Composite rose 0.2% to 26,351.9, the S&P 500 gained 0.3% to 7,716.6, and the Dow Jones Industrial Average increased 0.2% to 53,453.6. Healthcare and consumer discretionary led the gainers, while industrials and financials led the decliners.The yield on 30-year Treasuries fell 8.9 basis points to 5.196%, while the 10-year yield fell 5.3 basis points to 4.653%.Gold futures gained 3% to $4,557.1 per ounce, and silver futures rose 3.5% to $66.33.In economic news, US crude oil stocks, including those in the Strategic Petroleum Reserve, fell by 900,000 barrels in the week ended Aug. 14, following an increase of 11.3 million barrels in the prior week.The US West Texas Intermediate crude oil contract rose 0.8% to $85.65 per barrel.US mortgage applications fell by 0.4% in the week ended Aug. 14, with an increase in refinancing activity offset by declining home purchase applications, according to the Mortgage Bankers Association.In company news, Moderna (MRNA) shares climbed 169%, and Merck (MRK) shares gained 13% after the companies said a trial of intismeran autogene combined with Keytruda met the primary endpoint of recurrence-free survival and a key secondary endpoint of distant metastasis-free survival in patients with completely resected stage IIB-IV melanoma.

Dow JonesNasdaq CompositeS&P 500$MRK$MRNA
Japan

US Equity Indexes Rise as Treasury Yields Ease on Buyback Ramp

US equity indexes rose on Wednesday after the Treasury said it would at least double the size of buybacks of long-dated government debt, driving long-term Treasury yields sharply lower from multi-year highs.The Nasdaq Composite rose 0.5% to 26,438.7, and the S&P 500 gained 0.5% to 7,735. The Dow Jones Industrial Average increased 0.3% to 53,536.9. Health and materials sectors led the gainers, while the industrials and utilities sectors led the decliners.The yield on 30-year Treasuries fell 7.9 basis points to 5.21%, while the 10-year yield fell 4.6 basis points to 4.66%.Gold futures gained 3.1% to $4,556.60 per ounce, and silver futures rose 3.2% to $66.06.In economic news, US crude oil stocks, including the Strategic Petroleum Reserve, fell by 900,000 barrels in the week ended Aug. 14, following an increase of 11.3 million barrels in the week earlier.Excluding SPR inventories, commercial crude oil stocks rose by 4.4 million barrels compared with a 17.4-million-barrel gain in the week prior, and above the 200,000-barrel increase expected in a survey compiled by Bloomberg.The US West Texas Intermediate crude oil contract rose 2.1% to $86.74 per barrel.US Mortgage applications fell by 0.4% in the week ended Aug. 14, with an increase in refinancing activity offset by a decline in home purchase applications, according to Mortgage Bankers Association data released Wednesday.In company news, Moderna (MRNA) shares climbed 128%, and Merck (MRK) shares gained nearly 11% after the companies said a trial of intismeran autogene in combination with Keytruda met the primary endpoint of recurrence-free survival and a key secondary endpoint of distant metastasis-free survival in patients with completely resected stage IIB-IV melanoma.

Dow JonesNasdaq CompositeS&P 500$MRK$MRNA