United States stock futures traded lower on Thursday evening (Friday AEST), as investors remained focused on rising geopolitical tensions in the Middle East ahead of closely watched U.S. data releases.
As of 8:45 am AEST (10:45 pm GMT), futures for the Dow Jones Industrial Average, S&P 500, and Nasdaq were each down between 0.3% and 0.4%. However, trading in the last hour showed signs of a partial recovery.
Markets were closed on Thursday for the Juneteenth public holiday, leading to thin volumes and a cautious tone as traders assessed the potential for U.S. involvement in the Israel-Iran conflict.
U.S. President Donald Trump is reportedly considering direct military action against Tehran. On Thursday, White House spokeswoman Karoline Leavitt said Trump would decide “within two weeks” whether to intervene.
Israeli Prime Minister Benjamin Netanyahu is reported to have ordered further strikes on both strategic and government targets in Iran.
Back in the U.S., investors are also digesting Fed Chair Jerome Powell's latest comments after policymakers held rates steady.
Trump criticised Powell in a Truth Social post on Thursday, saying, “'Too Late' Jerome Powell is costing our Country Hundreds of Billions of Dollars. He is truly one of the dumbest, and most destructive, people in government, and the Fed Board is complicit.”
For the week, the Dow Jones has eased 0.06%, the S&P 500 is up a modest 0.07%, while the Nasdaq is up 0.7%.
Investors will now focus on key economic data due Friday. The Philadelphia Fed's manufacturing index is scheduled to be released this morning in the United States, followed by the Conference Board's Leading Economic Index for May.
