US stock futures slip amid Middle East developments

Futures tied to the Dow, the S&P 500 and the Nasdaq 100 each wavered below the flatline

US stock futures slipped as traders weighed developments in the Iran-US war against the outlook for central bank policy.

Futures tied to the Dow, the S&P 500 and the Nasdaq 100 each wavered below the flatline.

During Tuesday’s session, the Dow dropped more than 100 points after briefly reaching a record intraday high. The S&P 500 fell 0.5 per cent, and the Nasdaq Composite lost 1.2 per cent, with semiconductor stocks leading the decline.

Markets are digesting a sharp escalation in Iran tensions after US attacked Iran late Tuesday in response to attacks on three commercial vessels in the Strait of Hormuz.

U.S. energy markets have been shaken after the country revoked what it calls a license that had let Iran export oil, adding to concerns over potential supply disruptions. Crude prices climbed more than 2 per cent, with West Texas Intermediate trading above $72 a barrel and Brent jumped over 3 per cent to trade at 74$.

SpaceX stock dropped below its IPO price after inclusion into the Nasdaq allowed early investors to offload shares to funds. However, institutional funds still hold bullish opinions after initiating coverage. JPMorgan Chase has set a price target of $225 with Morgan Stanley setting a Street-high $300 target.

Attention now shifts to Wednesday afternoon’s release of minutes from the US central bank’s June meeting. Investors will parse the document for clues about policymakers’ thinking after the central bank held interest rates steady at Chairman Kevin Warsh’s first meeting.