U.S. stock futures indicate a weaker start to Thursday’s trading session, suggesting markets could face selling pressure after the major indexes finished largely unchanged over the past two days.
A renewed surge in crude oil prices could weigh on investor sentiment, as energy markets continue to rebound following Tuesday’s steep drop.
U.S. crude for April delivery has jumped $6.12, or 7%, to $93.37 per barrel, although prices remain well below Monday’s highs near $120 per barrel.
Meanwhile, international benchmark Brent crude for May delivery is also climbing about 7% after briefly moving above $100 per barrel earlier in the session.
The latest rally in oil comes after reports that three additional foreign vessels were struck overnight in the Persian Gulf, raising fresh concerns about shipping through the strategically important Strait of Hormuz.
Energy Secretary Chris Wright said in an interview with CNBC this morning that the U.S. Navy is “not ready” to escort oil tankers through the strait.
Stocks lacked clear direction throughout Wednesday’s trading session, continuing the subdued tone seen the previous day. The major indexes spent most of the session fluctuating around the flat line.
By the closing bell, the benchmarks ended mixed for the second consecutive session. The Nasdaq edged up 19.03 points, or 0.1%, to 22,716.13. The S&P 500 slipped 5.68 points, or 0.1%, to 6,775.80, while the Dow Jones Industrial Average dropped 289.24 points, or 0.6%, to 47,417.27.
The uneven trading on Wall Street suggests investors may be pausing after several sessions marked by significant volatility.
Much of the recent market turbulence has been driven by sharp swings in oil prices, which are rebounding again after Tuesday’s decline.
Crude regained momentum after the United Kingdom Maritime Trade Operations reported that three vessels were struck by projectiles near Iran’s coast, heightening concerns about safe passage through the Strait of Hormuz.
Additional reports indicating that Iran may be attempting to deploy mines in the strait have further intensified worries about shipping through the key waterway.
At the same time, traders largely shrugged off fresh inflation data from the U.S. Labor Department showing that consumer prices rose in February in line with economists’ expectations.
The report showed that the consumer price index increased 0.3% in February after rising 0.2% in January, matching forecasts.
Core consumer prices, which exclude food and energy, rose 0.2% in February after a 0.3% increase in the previous month, also in line with expectations.
The data also showed that the annual inflation rate for consumer prices remained unchanged at 2.4%, while the yearly core inflation rate held steady at 2.5%.
Most major sectors posted only modest moves during the session, contributing to the overall muted performance in the broader market.
Energy stocks, however, advanced strongly alongside rising oil prices, with the NYSE Arca Oil Index climbing 3.5%.
Computer hardware stocks also posted notable gains, pushing the NYSE Arca Computer Hardware Index up 1.5%.
In contrast, gold mining stocks declined as the price of gold fell, dragging the NYSE Arca Gold Bugs Index down 2.3%.
Housing stocks also moved lower amid rising Treasury yields, with the Philadelphia Housing Sector Index slipping 1.6%.
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