Wall Street’s rally is facing a fresh Middle East test before the opening bell.
US stock futures slid on Wednesday after President Donald Trump said the Iran peace memorandum was “over”, sending oil prices higher and putting renewed pressure on technology shares.
Nasdaq 100 futures touched a four-week low as investors moved away from risk, while energy names gained in premarket trading on the crude spike.
The move leaves traders balancing two competing forces: a possible oil-led inflation shock and the still-powerful support from AI-linked earnings.
Fed minutes later in the day could sharpen that debate for the session ahead.
5 things to know before Wall Street opens
1. Futures turn sharply lower
Dow futures fell 564 points, or 1.1%, after Trump’s remarks in Ankara. S&P 500 futures dropped 0.9%, while Nasdaq 100 futures led the decline with a 1.3% loss.
The move follows a powerful run in US equities, making the market more sensitive to any shock that could lift inflation or bond yields.
2. Trump’s Iran comments shake risk appetite
Trump said in Ankara that the memorandum aimed at ending the war with Iran was “over” and signalled little appetite for further engagement with Tehran.
That hit hopes that the fragile ceasefire could be extended into a broader settlement.
Iran’s Revolutionary Guards said they targeted US military sites in Bahrain and Kuwait after Washington launched fresh strikes on Iran.
The US said its action followed attacks on tankers in the Strait of Hormuz.
3. Oil spike revives inflation concerns
Brent and West Texas Intermediate crude both rose more than 5% as traders priced in a higher risk premium for supply moving through Hormuz.
The waterway remains critical for global oil shipments, so even limited disruption can move inflation expectations quickly.
A crude spike is awkward for equities. It can support energy stocks, but it also raises the risk that the Fed keeps policy tighter for longer.
4. Energy stocks buck the selloff
Oil producers were the early winners. Chevron rose 2.4% in premarket trading, Exxon Mobil gained 3% and ConocoPhillips advanced 2.2%.
Devon Energy, Occidental Petroleum, APA and Diamondback Energy also moved higher.
That rotation shows investors are not simply exiting equities.
They are shifting towards sectors that benefit from higher crude while reducing exposure to rate-sensitive growth shares.
5. Fed minutes add another policy test
The Fed’s June meeting minutes are due later Wednesday.
Investors will look for how officials judged inflation risk, energy-market stress and growth under Chair Kevin Warsh.
CME FedWatch pricing suggests markets expect at least one rate hike by the end of 2026.
The minutes may not settle that debate, but they could show whether the central bank is becoming more worried about renewed inflation shocks.
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