U.S. stock futures showed a downward trend on Wednesday night, following a modest start to the second quarter for equities. Investors are closely monitoring a national address by President Trump regarding the ongoing conflict in Iran.
Futures associated with the S&P 500 fell by 0.7%, while the Nasdaq 100 futures experienced a decline of 0.9%. The Dow Jones Industrial Average futures also dropped by 0.6%. The market’s reaction is largely driven by anticipation for the president’s speech, set for 9 PM ET, in which he was expected to provide significant updates on the war with Iran. Recent developments in the conflict have unsettled global markets, with the status of the Strait of Hormuz being a key factor for stability in energy sectors.
Since the beginning of the war in late February, Brent crude prices have surged by approximately 40%. Despite a recent pullback in oil prices that has slightly eased market tensions, U.S. benchmark West Texas Intermediate settled down 1.2% at near $100 a barrel. Meanwhile, Brent crude fell by 2.7%, hovering just above $101.
In a post shared on social media, President Trump mentioned that Iran’s president had expressed interest in a ceasefire. However, he stipulated that any agreement would depend on the reopening of the crucial Strait of Hormuz. In his remarks, Trump asserted that U.S. forces would take significant military action against Iran, vowing to “hit Iran hard” and “send them to the stone age,” while also indicating a withdrawal timeline of two to three weeks.
As the financial markets brace for the final trading session of a shortened week due to the upcoming Good Friday holiday, investors will be paying close attention to the weekly jobless claims data expected in the morning and the highly anticipated March jobs report due on Friday.
As the war drags into its fifth week, energy prices remain elevated, showing only minor reductions from multi-year highs. According to economists at Bank of America, this scenario is expected to result in slower economic growth and heightened inflation, with predictions of oil prices remaining around $100 a barrel through the end of 2026.
