FX.co ★ US Futures Pull Back

US equity futures retreated on Thursday as increasingly confrontational remarks from President Trump reinforced fears of a protracted conflict with Iran and heightened the risk of a global energy shock. Futures on the S&P 500, Dow, and Nasdaq 100 were all down more than 1%.

The President vowed more forceful strikes on Iran in the coming weeks, drawing a similarly hardline response from Iranian officials and bolstering expectations that energy exports from the Persian Gulf will remain suspended. Market participants also grew more concerned about potential attacks on energy infrastructure across the region.

The conflict’s inflationary implications pushed Treasury yields higher across the curve, weighing on equities that had rallied earlier in the week on improving credit conditions and risk appetite. Nvidia, Meta, and Tesla were each off nearly 3% in pre-market trading. Elsewhere, shares of Estée Lauder slipped 2% amid reports of progress in its merger talks with Puig.