Investing.com Update

US stock futures are lower as traders watch escalating violence in the Middle East. Iran claims its air bombardment of Israel is over, while Israel threatens a retaliatory response.

1. Futures Lower

US stock futures dipped on Wednesday as tensions in the Middle East weighed heavily on market sentiments.

• Dow futures: -111 points (-0.3%)
• S&P 500 futures: -8 points (-0.1%)
• Nasdaq 100 futures: -30 points (-0.1%)

Main indices on Wall Street fell due to the Iranian missile attack on Israel, with minor rebounds from intra-day lows:
– Dow Jones: -174 points (-0.4%)
– S&P 500: -54 points (-1.0%)
– Nasdaq Composite: -279 points (-1.5%)

Despite the downturn, energy stocks surged alongside rising oil prices, and defense stocks like Northrop Grumman and Lockheed Martin experienced gains.

2. Iran’s Attack Concluded

Iran stated the missile barrage on Israel has ended but warned it could resume if provoked. Israel may retaliate significantly, targeting oil facilities in Iran.

Prime Minister Netanyahu declared that Iran would face consequences for its actions, while the U.S. warned of severe repercussions and remained positioned to defend its interests in the region.

3. Oil Prices Increase

Oil prices rose sharply due to heightened tensions in the Middle East, raising fears of disrupted crude supply.

• Brent: $75.50 (+2.6%)
• WTI: $71.80 (+2.8%)

Both benchmarks surged over 5% following the Iranian attack. OPEC+ is expected to meet later, with no output changes anticipated.

4. Vance-Walz Debate

In their only debate, VP candidates JD Vance and Tim Walz expressed contrasting views on their running mates and administration achievements.

Vance defended former President Trump’s economic record, while Walz pushed back against Trump’s denial of losing the 2020 election, maintaining a notably civil tone.

5. Nike Withdraws Guidance

Nike shares fell after the company scrapped its annual guidance and reported a 10% revenue slump, generating $11.59 billion instead of the anticipated $11.65 billion.

Net income fell by 28% to $1.1 billion amid executive changes with John Donahoe being replaced by Elliott Hill. CFO stated that Nike will provide quarterly forecasts due to these changes, expecting an 8%-10% revenue decline in the current quarter.

(Reuters contributed reporting.)