U.S. stock index futures showed little net movement late Thursday as Wall Street had extended earlier losses tied to a wild intraday move in oil and a pullback in expectations for near-term Federal Reserve easing.
By 20:10 ET (00:10 GMT), S&P 500 Futures had inched up 0.1% to 6,669.0 points, while Nasdaq 100 Futures rose 0.1% to 24,600.25 points. Dow Jones Futures gained 0.2% to 46,424.0 points.
On the cash market, the three main U.S. indexes closed lower, although selling pressure eased from deeper intraday losses. The Dow Jones Industrial Average retreated 0.4%. The S&P 500 and the NASDAQ Composite each slipped roughly 0.3%, with rising crude oil prices cited as a key factor weighing on sentiment.
Brent crude spiked to about $119 a barrel during the session amid heightened tensions in the Middle East before retreating to finish only modestly higher. The abrupt move higher in oil rekindled concerns that renewed energy price pressures could feed into broader inflation measures and complicate central bank policy.
Geopolitical comments during the day provided some relief on supply-concern headlines. Israeli Prime Minister Benjamin Netanyahu said Israel was assisting the United States "in intel and other means" to help reopen the Strait of Hormuz, a vital route for global oil shipments. Separately, President Donald Trump told Israel not to repeat its attacks on Iranian gas facilities. Those remarks were cited as easing some immediate fears of a prolonged disruption to oil flows.
At the same time, the Federal Reserve kept its policy interest rate unchanged on Wednesday, maintaining the current benchmark range. Fed Chair Jerome Powell cautioned that higher oil prices have the potential to feed into inflation more broadly, complicating the central bank's road to price stability. Following the Fed decision, market participants further reduced bets on rate cuts this year.
Market pricing now implies a "higher-for-longer" interest rate environment, with tools such as the CME FedWatch indicating little to no chance of interest rate cuts before mid-2027.
Key takeaway: Intraday oil volatility and a hawkish Fed stance combined to shake investor confidence during the session, leaving futures largely steady as traders reassessed the outlook for growth, inflation, and monetary policy.
Summary section
- Futures were little changed late Thursday after equities fell on oil-driven worries and reduced expectations for Fed easing.
- Brent crude briefly jumped near $119 a barrel, then eased, while geopolitical comments suggested some effort to limit supply disruption risk.
- The Fed left rates unchanged and officials warned higher oil could complicate disinflation, with markets pricing few if any cuts before mid-2027.