U.S. equity futures traded sharply lower on Wednesday after President Donald Trump declared the interim peace framework with Iran was no longer in effect, adding to mounting geopolitical concerns that were already weighing on investor sentiment.
By 09:03 GMT, Dow Jones futures had dropped 680 points, or 1.3%, while S&P 500 futures were down 71 points, or 0.9%. Nasdaq 100 futures also fell 381 points, or 1.3%.
Trump Says Ceasefire Arrangement Has Ended
Speaking during the NATO summit in Turkey, Trump said the temporary agreement with Iran had effectively collapsed, accusing Tehran of failing to honour the deal.
“We make a deal, and everyone’s agreed. No nuclear weapons. We make a deal. They go outside, talk to the press, they say we never even talked about it. There’s something wrong with them. They’re cuckoo. As far as I’m concerned, it’s over,” Trump said.
The comments followed reports that Iranian forces had launched attacks against U.S. military facilities in Kuwait and Bahrain in response to American military operations and Washington’s decision to revoke a sanctions waiver on Iranian oil exports.
Investors Monitor Oil and Federal Reserve Signals
Crude oil prices rose sharply as renewed conflict in the Middle East increased concerns over global energy supplies, fuelling expectations that higher fuel costs could add to inflationary pressures.
Attention is now turning to the release of the Federal Reserve’s June meeting minutes, with investors looking for clues on how policymakers are assessing inflation risks, economic resilience and the outlook for interest rates under Fed Chair Kevin Warsh.
Earnings Season Draws Closer
U.S. markets closed lower on Tuesday, led by weakness in technology shares after Samsung Electronics (USOTC:SSNHZ) released earnings that, despite beating expectations, failed to reassure investors about demand for AI-related products and memory chips.
The S&P 500 lost 0.5%, the Nasdaq Composite fell 1.2%, and the Dow Jones Industrial Average declined 0.3%.
Investors are also preparing for the start of the second-quarter earnings season, which begins later this week.
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