US, Iran trade airstrikes as Trump downplays Hormuz deal hopes
Investing.com-- U.S. stock futures fell in Asian trading on Tuesday after Wall Street’s record-setting rally, as uncertainty surrounding U.S.-Iran peace negotiations and caution ahead of a key inflation report kept traders on edge.
S&P 500 Futures fell 0.4% to 7,509.20 points, while Nasdaq 100 Futures declined 0.8% to 29,799.75 points by 00:23 ET (04:23 GMT). Dow Jones Futures ticked down 0.3% to 50,602.0 points.
All three major indexes notched record high closes in the regular session after reports from Iranian state media suggested that Washington and Tehran were discussing a draft framework that could eventually reopen the Strait of Hormuz and restore commercial shipping flows.
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However, reports emerged overnight of fresh U.S. military strikes on an Iranian military site, underscoring the fragility of negotiations and the risk of renewed escalation in the region.
Thursday’s attacks came shortly after U.S. President Donald Trump dismissed a report that Iran and Oman would jointly manage shipping through the Strait of Hormuz under a proposed agreement aimed at ending the conflict.
Oil prices rebounded in Asian trading on Thursday following the reports, with U.S. crude climbing 4% after tumbling over 5% in the previous session.
Markets are also bracing for the release of the U.S. Personal Consumption Expenditures (PCE) price index later on Thursday, the inflation gauge most closely watched by the Federal Reserve. Analysts expect headline PCE inflation to rise 0.5% month-on-month, while core PCE is forecast to increase 0.3%.
A hotter-than-expected reading could reinforce expectations that the Fed may keep interest rates elevated for longer or may even hike rates.
Treasury yields rose modestly after falling in the previous session alongside oil prices. The benchmark 10-year Treasury yield hovered near 4.53% after retreating from recent highs.
Technology shares remained in focus after a strong AI-driven rally pushed the Nasdaq to fresh records this week.