S&P Futures experienced a modest decline on Thursday following the Dow Jones Industrial Average’s descent to a new low for 2026 in the prior session, as concerns regarding inflation intensified on market. Dow futures exhibited a decline of 55 points, translating to a decrease of 0.1%. Futures for the S&P 500 and Nasdaq 100 experienced declines of 0.1% and 0.2%, respectively. Brent crude futures, the international benchmark, experienced a notable increase of 7%, reaching $114.86 per barrel on Thursday. West Texas Intermediate crude futures experienced a decline of 0.3%, settling at $96.03 per barrel. The increase in global oil prices is a direct consequence of an assault on Iran’s South Pars gas field by Israel. Iran subsequently responded by targeting energy facilities in Qatar. President Donald Trump issued a warning that if more facilities in Qatar were attacked, the U.S. would “massively blow up the entirety of the South Pars Gas Field.”
Micron Technology experienced a decline of 6% in premarket trading. A memory supply shortage significantly contributed to the semiconductor company’s nearly threefold increase in revenue during its latest quarter. Markett is emerging from a lackluster trading session. On Wednesday, the 30-stock Dow experienced a decline of approximately 768 points, representing a decrease of 1.6%, marking a new closing low for the year. The benchmark, which also reached an intraday low for 2026, ultimately closed beneath its 200-day moving average, a technical indicator that implies the long-term trend for the index has turned negative. The S&P 500 experienced a decline of 1.4%, whereas the Nasdaq Composite fell by 1.5%. The recent sell-off follows an unexpectedly robust producer prices report, coupled with heightened inflation expectations from the Federal Reserve. This has intensified concerns that the conflict in Iran may lead the U.S. economy toward a stagflation scenario, characterized by diminished growth alongside escalating pricing pressures. The outlook for an interest rate cut has been tempered, despite the Federal Reserve indicating that a reduction remains on the agenda for this year.
According to the CME FedWatch tool, markets were last assigning a 52% probability that the central bank will maintain its current stance in 2026. Investors maintain optimism regarding the potential for the stock market to stabilize, as the environment of robust corporate earnings and a resilient consumer continues to provide a favorable context for equities. The primary concern at present will continue to be the length of the conflict in Iran. “The most significant uncertainty or unknown pertains to the duration of this crisis.” If it persists for an extended period, the consequent effects on inflation and possibly on growth are what will disrupt the market,” stated the head of U.S. equity strategy at Barclays. Venu Krishna stated. “However, we have not reached that point yet. That is not our base case. One must simply maintain a hopeful disposition.
On the economic front, the latest weekly jobless claims data is set to be released Thursday morning. The Philadelphia Fed Manufacturing Index is scheduled for release as well. U.S. markets are set to commence trading under the weight of widespread selling pressure observed in global markets, as both stocks and bonds are experiencing declines across Europe and Asia. The pan-European index experienced a decline of 1.8% during early trading in London, while Japan’s Nikkei, Hong Kong’s Hang Seng, and South Korea’s Kopsi recorded decreases of 3.4%, 2%, and 2.7%, respectively.