United States stock futures slipped in after-hours trading on Wednesday (Thursday AEST), as investors reacted to a mixed policy update from the Federal Reserve and ongoing geopolitical tensions in the Middle East.
By 9 am AEST (11 am GMT), Dow Jones Industrial Average futures, S&P 500 futures, and Nasdaq 100 futures each declined by 0.1%.
During Wednesday’s regular trading, the Dow edged down 0.1%, the S&P 500 ended flat, and the Nasdaq rose 0.1%.
As widely expected, the Federal Reserve held its benchmark interest rate steady, while reaffirming expectations for two rate cuts before the end of 2025.
At the same time, policymakers raised their outlook for inflation and trimmed forecasts for economic growth.
Meanwhile, geopolitical developments have added another layer of uncertainty for markets, as the Wall Street Journal reported late Wednesday (Thursday AEST) that President Donald Trump had approved military plans for a potential strike on Iran, but was holding off on issuing a final order.
According to sources cited in the report, Trump is waiting to see if Tehran is willing to abandon its nuclear ambitions.
Among the military options discussed were the use of U.S. bunker-buster bombs targeting Iran’s fortified Fordo nuclear facility, located deep underground.
While no final decision has been made, the possibility of U.S. military engagement in the region introduced fresh volatility and risk to global markets.
U.S. markets are also set to remain closed on Thursday for the Juneteenth public holiday.
