U.S. stock futures are likely to edge lower. With employment data and corporate earnings in focus, the market is expected to assess movements in crude oil prices and long-term interest rates, which drove the recent declines. Dell Technologies' upward revision to its full-year outlook related to AI is also drawing market attention.
S&P 500 futures were at 7,634.75, down 8.00, while Nasdaq 100 futures were at 29,048.00, down 77.50, in modest declines. Dow futures were also reported to be down 13 points, with selling expected to lead for now against a backdrop of higher U.S. interest rates and crude oil prices.
In the New York market the previous day, the three major indexes fell for a third straight session, with the Dow down 419 points at 52,766 at the close. President Trump's statement that the attacks on Iran would continue and concerns over supplies through the Strait of Hormuz pushed up crude oil prices, sending WTI sharply higher into the $90-per-barrel range. Rising long-term interest rates also weighed on the broader market.
Although some analysts expect losses to ease today, selling could continue amid the prolonged situation in the Middle East and rising crude oil prices and long-term interest rates. The ISM manufacturing index and JOLTS job openings deteriorated, but tonight's ADP employment report and manufacturing new orders are expected to improve, potentially helping to curb selling.
In corporate earnings, Dell Technologies announced an upward revision to its full-year outlook on surging demand for AI servers, creating an environment in which semiconductor-related stocks are likely to attract buying.