United States stock futures were mixed on Wednesday evening (Thursday AEST) as investors weighed renewed military action between the United States and Iran, rising oil prices and the prospect of higher interest rates.
By 10:15 am AEST (12:15 am GMT), Dow Jones futures were down 0.1%, S&P 500 futures were little changed, while Nasdaq 100 futures rose 0.2%.
In extended trading, Levi Strauss fell 5.2% despite reporting stronger-than-expected second-quarter results and raising its full-year guidance and dividend.
The apparel maker posted adjusted earnings per share (EPS) of $0.28, ahead of expectations for $0.24, while revenue came in at US$1.56 billion, above forecasts of $1.52 billion.
Investor sentiment remained cautious after the United States launched fresh strikes against Iran in response to Tehran's attacks on commercial shipping in and around the Strait of Hormuz, according to U.S. Central Command.
Earlier on Wednesday, President Donald Trump signalled he may no longer be interested in negotiating with Iran after previously declaring the U.S.-Iran ceasefire agreement was "over" following another wave of attacks in the Middle East.
The latest escalation pressured Wall Street during the regular session. The Dow Jones Industrial Average fell 1.1%, the S&P 500 lost 0.3%, while the Nasdaq Composite gained 0.2%, supported by strength in Nvidia and other semiconductor stocks.
Investors remain concerned that higher oil prices could reignite inflationary pressures, potentially forcing the Federal Reserve to keep interest rates elevated for longer than previously anticipated.
Minutes from the Fed's June policy meeting reinforced that view, showing officials remained divided over the future path of interest rates and were reluctant to ease policy until inflation showed more convincing signs of returning to target.
Attention now turns to Thursday's U.S. economic data, including the weekly initial jobless claims report and existing home sales figures, both of which could provide fresh clues on the health of the economy.
On the corporate calendar, PepsiCo is scheduled to report quarterly earnings before the opening bell.
