US Stock Futures Rise Slightly After Iran Tensions Weigh on Wall Street
U.S. stock index futures moved modestly higher on Thursday evening after renewed military tensions involving Iran and the Strait of Hormuz pulled Wall Street away from recent record highs.
Despite geopolitical concerns, losses remained relatively limited as technology stocks continued to show resilience, supported by ongoing optimism surrounding artificial intelligence.
S&P 500 Futures gained 0.2% to 7,377.25 points, while Nasdaq 100 Futures rose 0.3% to 28,767.0 points. Dow Jones Futures also edged 0.1% higher to 49,768.0 points.
Investors Watch Middle East Conflict Closely
Markets reacted after the U.S. military announced it had intercepted Iranian attacks targeting three American warships traveling through the Strait of Hormuz.
Iran had previously accused the United States of violating a ceasefire agreement after strikes were carried out against several targets near the strategic waterway.
Tehran has reportedly been seeking to strengthen its control over the Strait of Hormuz, while the United States recently launched — and later paused — an operation aimed at restoring commercial shipping activity in the region.
U.S. President Donald Trump stated that the ceasefire agreement remained active and described the latest military exchange as “a love tap.” However, he later warned that additional strikes against Iran could follow if negotiations failed to progress quickly.
The latest escalation reduced investor optimism surrounding a potential U.S.-Iran peace agreement, especially after both sides had recently indicated progress toward a diplomatic deal.
Wall Street Pulls Back From Record Highs
The renewed geopolitical uncertainty pressured major U.S. stock indexes during Thursday’s session.
The S&P 500 declined 0.3% to 7,337.10 points, while the Nasdaq Composite slipped 0.1% to 25,806.20 points. The Dow Jones Industrial Average recorded the biggest drop among the three major indexes, falling 0.6% to 49,596.60 points.
Chipmaking companies also retreated from recent highs as investors took profits amid softer risk appetite. However, the semiconductor sector remained broadly supported by strong long-term expectations tied to artificial intelligence growth.
Nonfarm Payrolls Data in Focus
Investors are now turning their attention to Friday’s nonfarm payrolls report for additional clues about the strength of the U.S. economy and the future direction of interest rates.
Markets will closely examine whether the ongoing Middle East conflict has started affecting hiring activity and broader labor market conditions.
The employment report is expected to play a major role in shaping expectations for Federal Reserve policy. However, many investors increasingly believe the Fed could keep interest rates unchanged for the remainder of the year due to continued uncertainty surrounding the Iran conflict and its economic impact.
