Premarket contracts tied to the major U.S. indexes were trading lower on Thursday as a rise in global oil prices followed a string of attacks on key energy facilities in the Middle East.
At 07:22 ET (11:22 GMT) market data showed the Dow futures contract down 104 points, or 0.2%, S&P 500 futures off 17 points, or 0.3%, and Nasdaq 100 futures lower by 92 points, or 0.4%.
Energy shares registered small gains after reports that Iran retaliated to strikes on a crucial gas deposit with bombardments of energy facilities across the Middle East. Chevron and Exxon Mobil were slightly higher in early trading, reflecting crude’s upward pressure.
Stocks most sensitive to rising fuel costs slipped. Delta Air Lines and United Airlines ticked down in the premarket, as did cruise operators Norwegian Cruise Line Holdings and Carnival, reflecting investor caution about higher fuel expense weighing on airline and leisure operators.
Semiconductor names showed mixed reactions. Micron Technology posted fiscal second-quarter revenue that nearly tripled from a year earlier and reported earnings per share that rose nearly eightfold. Despite those results, Micron shares fell more than 6% in premarket trade after the company said it expects to invest over $25 billion in new manufacturing facilities in fiscal 2026 - roughly $5 billion more than its previous outlook.
Other memory-related names including SanDisk and Western Digital were also lower, and AI-focused chipmaker Nvidia moved down in early trade.
Gold continued a multi-session decline, slipping for a seventh straight day. The ongoing slide in the yellow metal weighed on mining stocks such as Newmont, Agnico Eagle Mines and Freeport-McMoRan. Market commentary tied bullion’s underperformance to expectations for sustained elevated interest rates and a firmer U.S. dollar, factors that can reduce the appeal of non-yielding assets.
On the retail front, shares of Five Below jumped after the company’s first-quarter net sales forecast exceeded expectations, sending the discount retailer higher in premarket action.
Key points
- U.S. futures were lower amid a surge in global oil prices tied to attacks on Middle Eastern energy infrastructure, with the Dow, S&P 500 and Nasdaq 100 futures all down at 07:22 ET (11:22 GMT).
- Energy producers saw modest gains while airlines and cruise operators declined on sensitivity to higher fuel costs.
- Micron reported sharply improved revenue and EPS year-on-year but its stock fell after raising projected capital spending for fiscal 2026; gold’s seventh straight drop pressured mining stocks, while Five Below rallied on an upbeat sales outlook.
Risks and uncertainties
- Elevated crude prices driven by attacks on energy infrastructure could further pressure airlines and leisure operators through higher fuel costs.
- Higher interest rate expectations and a stronger U.S. dollar may continue to weigh on gold and mining stocks.
- Increased capital expenditure forecasts by major chipmakers could concern investors despite recent revenue and earnings improvements, potentially affecting sentiment in semiconductor and memory sectors.