U.S. stock index futures moved higher early Thursday after American military forces carried out additional strikes against Iran, while investors weighed the potential economic impact of rising oil prices and awaited fresh inflation data.
Dow futures gained approximately 0.6%, while futures linked to the S&P 500 and Nasdaq 100 also advanced, signaling a potential rebound after a sharp selloff during the previous trading session.
The market reaction came after U.S. Central Command confirmed military operations targeting Iran. The latest developments followed escalating tensions between Washington and Tehran, raising concerns about energy supplies and broader geopolitical risks.
Oil prices continued to move higher as traders monitored the situation in the Middle East. U.S. benchmark crude traded near $92 per barrel after posting significant gains amid concerns that disruptions to shipping routes and energy infrastructure could tighten global supplies.
The rise in crude prices has increased concerns about inflation, particularly as energy costs remain a key driver of consumer and producer prices worldwide.
Markets Recover After Sharp Selloff
Wednesday’s trading session saw major U.S. indexes post significant losses as investors reacted to geopolitical uncertainty and weakness across technology stocks.
The Dow Jones Industrial Average fell nearly 2%, while the S&P 500 and Nasdaq Composite also recorded steep declines. Technology shares were among the biggest laggards after software giant Oracle announced plans to raise additional capital to support its artificial intelligence investments.
Oracle shares fell sharply in after-hours trading, adding pressure to the broader technology sector.
Market strategists noted that some investors have recently shifted capital away from high-growth technology stocks toward sectors viewed as more defensive or better positioned to benefit from higher commodity prices and inflation.
Healthcare, energy, financial services, and selected biotechnology companies have attracted increased interest as investors seek diversification amid heightened market volatility.
Inflation Data in Focus
Investors are now turning their attention to the upcoming Producer Price Index (PPI) report, which is expected to provide additional insight into inflation trends across the U.S. economy.
Economists anticipate that producer prices increased during May, though at a slower pace than the previous month. The data will be closely watched for clues regarding future Federal Reserve policy decisions.
In addition to inflation data, weekly jobless claims figures are scheduled for release and could provide further information on labor market conditions.
SpaceX IPO Draws Investor Attention
Market participants are also preparing for the highly anticipated public debut of SpaceX, which is expected to begin trading later this week.
The offering is attracting significant attention from investors and analysts, with some market observers describing it as one of the largest and most closely watched stock market debuts in recent years.
Outlook
While futures pointed to gains ahead of Thursday’s session, investors remain focused on developments in the Middle East, energy markets, inflation trends, and the potential impact of those factors on monetary policy and economic growth.
Analysts expect volatility to remain elevated as markets assess geopolitical risks alongside economic data and corporate earnings developments.
