U.S. stock futures trended lower on early Wednesday due to the escalating geopolitical tensions in the Middle East. Futures on the S&P 500 (SPX) and the Nasdaq 100 (NDX) were down by about 0.19% and 0.23%, respectively, at 2.55 a.m. EST, October 2, while futures tied to the Dow Jones Industrial Average (DJIA) fell 0.28%.
Yesterday, the S&P 500 and the Dow Jones closed lower by 0.93% and 0.41%, respectively, while the Nasdaq Composite declined 1.53%. The news of Iran firing missiles at Israel impacted investor sentiment on the first day of October, following the solid rally witnessed in September due to the Federal Reserve’s interest rate cut.
The tension in the Middle East triggered a surge in oil prices. The WTI crude oil futures were trending higher by 1.79%, hovering near $71.06 per barrel as of the last check. Meanwhile, the U.S. 10-year treasury yield moved lower on Wednesday, floating near 3.739% at the time of writing.
In major earnings scheduled for today, Conagra Brands (CAG) and Levi Strauss (LEVI) will announce their quarterly results. Nike (NKE) is expected to be in focus, as shares fell about 6% in Tuesday’s extended trading session after the athletic apparel and footwear company reported a decline in its Fiscal Q1 revenue ahead of the CEO transition.
Elsewhere, European markets opened higher despite the situation in the Middle East, with traders awaiting the latest employment data for the region.
Asia-Pacific Markets Traded Mixed on Wednesday
Asia-Pacific stocks trended mixed on Wednesday. Hong Kong stock market continued to rally today, thanks to China’s latest stimulus measures. Meanwhile, stock markets in Mainland China are closed for the Golden Week Holiday.
At the time of writing, Hong Kong’s Hang Seng Index was up 6%. In contrast, Japan’s Nikkei was down 2.2%, while Topix trended lower by 1.44%.
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