U.S. stock futures tumbled on Thursday after President Donald Trump indicated that the Iran war would continue, sending oil prices higher as well.
Futures tied to the Dow Jones Industrial Average slid 541 points, or 1.2%. S&P 500 futures declined 1.4%, and Nasdaq 100 futures lost 1.7%.
Trump delivered an address Wednesday night, providing updates on the Middle East conflict. Though he said that the U.S. is “getting very close” to ending the Iran war, Trump added that the nation would “hit” Tehran “extremely hard.”
“Over the next two to three weeks, we’re going to bring them back to the stone ages where they belong,” the president said.
His comments also led to a surge in oil prices. West Texas Intermediate crude futures were last up 7.9% at $107.98 a barrel, while Brent crude futures advanced 7.3% to $108.59.
“The longer oil prices stay higher, the less consumers will have to spend, and the more the economy will slow,” Kevin Mahn, CIO of Hennion & Walsh, told CNBC’s “Squawk Box” in an interview. He added that he doesn’t expect the Federal Reserve to move on rates in the near future, so “we’re going to have to wait for a resolution in the conflict to actually see some respite with respect to oil prices and inflation.”
Investors are coming off a winning session after Trump said in a post that Iran’s president had asked the U.S. for a ceasefire. However, Trump said that the U.S. would only “consider” the offer once the Straight of Hormuz was “open, free, and clear.”
The announcement came after the president told reporters at the White House on Tuesday afternoon that he expects U.S. military forces will leave Iran in “two or three weeks.”
Thursday marks the last trading day of the shortened week, as markets are closed for Good Friday. On Thursday morning traders will watch out for initial jobless claims for the week ending March 28, while March’s jobs report is set for release on Friday morning.
—CNBC’s Spencer Kimball contributed reporting.
Oil prices soar
“Markets have reversed the continued positive momentum they’d seen yesterday amid rising hopes that an end to the conflict might be coming into view,” wrote Deutsche Bank strategists.
— Fred Imbert
Asia markets end lower after Trump’s Iran threats shake investor sentiment
Asian markets closed lower across the board on Thursday, reversing gains after U.S. President Donald Trump’s address rattled investor sentiment.
South Korea’s Kospi dropped 4.47% and settled at 5,234.05, leading Asian losses, and the small-cap Kosdaq was down 5.36% to 1,056.34. Both the indexes had opened more than 1% higher.
Japan’s Nikkei 225 fell 2.38% after Trump’s address, closing at 52,463.27, while the Topix fell 1.61% to 3,611.67.
Australia’s S&P/ASX 200 started the day in positive territory, but also fell 1.06% to finish at 8,579.5.
Hong Kong’s Hang Seng index fell around 1% in its final hour of trade, while the CSI 300 index on mainland China lost 1.04% to end the day at 4,478.91.
Indian markets opened lower after Trump’s speech, with the Nifty 50 down 1.38% and the Sensex falling 1.47% as of 1:06 p.m. local time.
— Lim Hui Jie
Asia-Pacific markets reverse gains as investors assess Trump address on Iran war
Asia-Pacific markets reversed gains on Thursday as investors assessed the address by President Donald Trump on the Iran war.
Japan’s Nikkei 225 was down 1.4% after Trump’s address, while the Topix fell 0.94%.
South Korea’s Kospi dropped 2.82% and the small-cap Kosdaq was down 3%.
Australia’s S&P/ASX 200 started the day in positive territory, but was also down 0.48%.
Hong Kong’s Hang Seng index opened 0.5% lower shortly after the speech, while the CSI 300 index on mainland China was flat.
— Lim Hui Jie
Eight of the 11 GICS sectors end Wednesday higher
Eight of the 11 GICS sectors traded higher on Wednesday.
The session’s gains were led by the communication services and industrials sectors, each up 1.65%.
The financials sector ended the session flat. On the other hand, energy and consumer staples stocks lagged, with the sectors dropping 3.89% and 0.57%, respectively.
— Lisa Kailai Han
Companies reporting earnings next week
Next week is another sparse one for the earnings calendar, but here are the three companies that, so far, will be reporting results then:
Tuesday, 4/7
Wednesday, 4/8
- Delta Air Lines (before opening bell)
- Constellation Brands (after closing bell)
— Lisa Kailai Han and Robert Hum
Stocks futures open little changed
Stock futures opened near flat on Wednesday night.
Shortly after 6 p.m. ET, futures tied to the three indexes were all trading around the flatline.
— Lisa Kailai Han
