FINWIRES · TerminalLIVE
FINWIRES

US Equity Indexes Retreat, Crude Oil Advances Amid Escalation in Iran War

By

US equity indexes declined while crude oil futures jumped as Iran struck Gulf nations Kuwait and Bahrain with missiles amid faltering diplomacy with Washington.

The Nasdaq Composite fell 1% to 26,810.6 in midday trading Wednesday, with the S&P 500 down 0.7% to 7,559.4, and the Dow Jones Industrial Average lower by 0.8% to 50,884.2.

Kuwait came under a barrage of ballistic missiles and drones on Wednesday that shut its international airport, killed one person, and injured dozens more, as Iran launched its largest salvo of the near two-month ceasefire, The Wall Street Journal reported.

The US struck the evening before an empty oil tanker it said was attempting to breach its blockade, setting off a string of attacks by both sides, with Iran firing ballistic missiles at US bases in Kuwait and Bahrain, according to the news report.

Brent crude futures marched 2% higher to $97.94, and West Texas Intermediate crude oil futures increased 2.3% to $95.91.

Most US Treasury yields rose, with the 10-year up 4.2 basis points to 4.5%. The two-year advanced 3.5 basis points to 4.09%.

Related Articles

Japan

US Equity Futures Mixed Pre-Bell as US, Iran Continue Military Strikes in Middle East

US equity futures were mixed pre-bell Wednesday as the US and Iran continued to exchange attacks in the Middle East, while progress on peace talks remained murky.Dow Jones Industrial Average futures were 0.3% lower, S&P 500 futures were down 0.1%, and Nasdaq futures were 0.2% higher.US Central Command reported the defeat of several Iranian ballistic missiles and drones launched at Kuwait and Bahrain. The military command said it also conducted "self-defense strikes" on Iranian forces on Qeshm Island in the Strait of Hormuz.President Donald Trump said that Iran has "already agreed" not to have nuclear weapons, according to a CNBC report that cited the New York Post's "Pod Force One" podcast. "I mean, now they can change their mind, but that was one of the things they've had to agree, they've agreed to that. That was the big thing," he said.Traders digested the latest round of earnings, with Palo Alto Networks (PANW) posting higher fiscal Q3 adjusted earnings and revenue.Oil prices were higher, with front-month global benchmark North Sea Brent crude up 2.1% at $97.97 per barrel and US West Texas Intermediate crude 2.1% higher at $95.73 per barrel.The ADP employment report for May, expected at 8:15 am ET, is seen showing an increase of 120,000 from 109,000 in the prior month, according to estimates compiled by Bloomberg.The S&P Global purchasing managers' index composite final report for May, due at 9:45 am ET, is seen reporting 51.7, unchanged from the prior value. April factory orders, due at 10 am ET, are expected to have gained 4.6%, compared with 1.5% previously.Federal Reserve Governor Michael Barr and Dallas Fed President Lorie Logan are slated to speak on Wednesday.

$^DJI$^IXIC$^SPX$PANW
Japan

Gold Futures Retreat 0.6% to $4,491.6/Oz, Silver Futures Decline 1% to $74.77/Oz Early Wednesday

Japan

Gold, Silver Futures Fall Pre-Bell as Crude Oil Jumps Amid US-Iran Strikes While Tehran Hits Bahrain, Kuwait With Missiles