U.S. stock futures point to a notably lower open on Thursday, suggesting equities may retreat after the gains recorded in the previous session.
Instability in oil markets is expected to weigh on investor sentiment, with Brent crude futures — the global benchmark — climbing more than 5% after falling over 2% during Wednesday’s trading.
The renewed surge in oil prices comes as uncertainty continues to surround possible diplomatic efforts to end the Middle East conflict. Iran rejected a U.S. proposal to pause the war, stating that any halt to hostilities would only occur under Tehran’s own conditions and timetable.
Posting on Truth Social, President Donald Trump described Iranian negotiators as “very different” and “strange,” while asserting they are “begging” the United States to reach an agreement.
“They better get serious soon, before it is too late, because once that happens, there is NO TURNING BACK, and it won’t be pretty!” Trump warned.
Concerns that the conflict could broaden may also weigh on markets after several Gulf states released a joint statement condemning Iran’s “criminal” attacks on their energy infrastructure.
“While we value our fraternal relations with the Republic of Iraq, we call on the Iraqi government to take the necessary measures to immediately halt the attacks … toward neighboring countries,” the statement said. It was issued by the United Arab Emirates, Kuwait, Bahrain, Saudi Arabia, Qatar and Jordan.
The Gulf nations also reiterated their right to self-defense and their ability to “take all necessary measures to safeguard our sovereignty, security, and stability.”
After finishing Tuesday’s choppy session mostly lower, U.S. stocks rebounded strongly in early trading on Wednesday. Although the major indexes lost some momentum later in the day, they still closed in positive territory.
The Nasdaq rose 167.93 points, or 0.8%, to 21,929.83. The Dow Jones Industrial Average gained 305.43 points, or 0.7%, to 46,429.49, while the S&P 500 added 35.53 points, or 0.5%, finishing at 6,591.90.
The early rally on Wall Street followed a sharp drop in oil prices, with Brent crude futures sliding 1.7% after surging the day before.
Crude prices pulled back after the New York Times reported that the United States had presented Iran with a 15-point plan aimed at ending the Middle East conflict.
According to two officials familiar with the diplomatic effort, the proposal — delivered through Pakistan — addresses Iran’s ballistic missile and nuclear programs.
The newspaper noted that it remains unclear whether Tehran would accept the proposal as a basis for negotiations but suggested that presenting the plan indicates the administration is stepping up efforts to bring the war to a close.
As diplomatic activity intensifies, Iran has informed both the United Nations Security Council and the International Maritime Organization that “non-hostile vessels” may pass through the Strait of Hormuz with Tehran’s authorization.
However, optimism in the markets was tempered by a report from Iran’s state-linked Fars News Agency claiming that Iran will reject the U.S. ceasefire proposal.
“Iran does not accept the ceasefire,” an informed source told FARS, according to a translation published on the outlet’s Telegram page. “Basically, it is not logical to enter into such a process with the violators of the agreement.”
On the economic front, the Labor Department released data showing U.S. import prices rose far more than expected in February.
Import prices increased 1.3% during the month after climbing a revised 0.6% in January.
Economists had forecast a 0.5% increase compared with the 0.2% rise originally reported for the prior month.
Export prices also jumped 1.5% in February following a 0.6% increase in January, exceeding expectations for a 0.5% gain.
Among sectors, biotechnology stocks posted notable gains, lifting the NYSE Arca Biotechnology Index by 3.5%.
Gold-related shares also rallied alongside rising bullion prices, pushing the NYSE Arca Gold Bugs Index up 3%.
Airline, computer hardware and pharmaceutical stocks also recorded solid gains, advancing along with most of the other major sectors.
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