FX.co ★ US Futures Hold Pullback

US equity futures were subdued on Wednesday, extending the week’s losses as tight financial conditions clouded the economic outlook. Futures on the S&P 500 and Dow traded little changed, while Nasdaq 100 contracts slipped 0.7%.

Geopolitical tensions remained elevated, with the US and Iran continuing to exchange strikes and reports of attacks on tankers near the Strait of Hormuz sustaining risks to global energy supply. The potential inflationary fallout from the conflict, combined with the prospect of further Federal Reserve rate hikes, was amplified by widening public deficits and increased corporate debt issuance, pushing sovereign yields higher across the curve.

Technology shares stayed under pressure, with Marvell, Palantir, and Seagate all down more than 2% in premarket trading. Palo Alto Networks also declined 2.5% despite surpassing earnings expectations. By contrast, Dell rallied nearly 10% after beating estimates and lifting its full-year revenue guidance. Nvidia was roughly unchanged amid advanced talks to acquire Hugging Face in a deal valued at about $14 billion.