Futures Pointing To Modestly Lower Open On Wall Street

(RTTNews) - The major U.S. index futures are currently pointing to a modestly lower open on Wednesday, with stocks likely to give back ground after inching higher over the past few sessions.

Uncertainty about the situation in the Middle East may weigh on Wall Street, as negotiations between the U.S and Iran continue to drag on.

U.S. Central Command said U.S. forces successfully defeated multiple Iranian ballistic missiles and drones and conducted "self-defense" strikes on Qeshm Island in response to attempted attacks by Iran on Tuesday.

The ongoing military exchanges have contributed to a sharp increase by the price of crude oil, with U.S. crude oil futures surging by nearly 3 percent.

However, stocks have recently been able to shrug off concerns about the war amid persistent optimism about strong earnings and resilient economic growth.

"For now, risk appetite remains supported, but with stretched valuations and shifting monetary policy expectations, markets appear increasingly sensitive to any signs that the earnings and growth story may begin to soften," said Daniela Hathorn, Senior Market Analyst at Capital.com.

Wall Street was able to shake off early weakness and find modest gains on Tuesday, with each of the three major averages hitting record closing highs for the third day in a row.

The Dow added 228.91 points or 0.5 percent to finish at 51,307.79, while the Nasdaq inched up 7.09 points or less than a tenth of a percent to close at 27,093.90 and the S&P 500 added 9.82 points or 0.1 percent to end at 7,609.82.

Stocks had benefitted from optimism for an end to the U.S.-Iran conflict in the past few sessions, but differing accounts from U.S. President Donald Trump and the Israelian Prime Minister Benjamin Netanyahu dampened hopes. A rebound by the price of crude oil also limited the upside.

Crude oil prices jumped on Tuesday as the U.S.-Iran Memorandum of Understanding has been delayed. Also, global energy watchdogs warn of accelerating crude oil inventory depletion.

While uncertainty about the situation in the Middle East kept some traders on the sidelines, optimism about the AI trade continued to generate positive sentiment on Wall Street.

Commodity, Currency Markets

Crude oil futures are surging $2.61 to $96.37 a barrel after jumping $1.60 to $93.76 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $4,478.20, down $41.70 compared to the previous session's close of $4,519.90. On Tuesday, gold rose $13.60.

On the currency front, the U.S. dollar is trading at 159.90 yen compared to the 159.89 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.1601 compared to yesterday's $1.1631.

Asia

Asian stocks ended mixed on Wednesday as renewed enthusiasm for artificial intelligence offset uncertainty over U.S.-Iran negotiations aimed at ending the war and reopening the Strait of Hormuz, a critical waterway for the global energy market.

U.S. Secretary of State Marco Rubio said that Iran has mined "large segments" of the Strait of Hormuz and peace talks could take several months to conclude.

Rubio also told the Senate Foreign Relations Committee that Iran's supreme leader Mojtaba Khamenei is alive and increasingly active at some level.

The ongoing war in the Middle East has dented economic growth prospects worldwide, with a more severe shock likely if no effective ceasefire is agreed before 2027, the OECD warned today.

Gold was subdued at $4,461 an ounce in Asian trading as the U.S. dollar held its ground on Fed rate hike expectations.

Brent crude futures rose nearly 2 percent toward $98 a barrel, extending gains for a third consecutive session on uncertainty surrounding U.S.-Iran peace negotiations.

China's Shanghai Composite Index edged up by 0.2 percent to 4,083.97 after a private survey showed China's services activity expanded at its fastest pace in three months in May. Chipmaking stocks topped the gainers list ahead of a crucial planned rebalancing of Indexes.

Hong Kong's Hang Seng Index slumped 1.6 percent to 25,633.21 due to profit taking following recent AI-driven investment gains.

Japanese markets rallied, with the Nikkei 225 Index surged 2.5 percent to hit a record closing high at 68,402.13, led by continued gain in technology stocks like Advantest and Tokyo Electron. The broader Topix Index settled 1.8 percent higher at 3,996.20.

South Korean markets were closed for a holiday. Australian markets advanced to a near one-month high after U.S. stocks pushed further into record territory overnight and weaker-than-expected domestic GDP data softened the outlook for further interest rate hikes.

Data showed Australia's GDP grew just 0.3 percent sequentially in the first quarter of 2026 compared with the 0.8 percent growth in the fourth quarter.

The benchmark S&P/ASX 200 Index advanced 0.7 percent to 8,785.70, with banks, miners, energy stocks and consumer staples leading the surge. The broader All Ordinaries Index closed 0.6 percent higher at 9,017.20.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index ended down 0.4 percent at 13,115.08, extending losses from the previous session.

Europe

European stocks edged lower on Wednesday as renewed Middle East tensions continued to push oil prices higher, clouding the outlook for inflation and interest rates.

Brent crude futures jumped nearly 3 percent toward $99 a barrel after the U.S. military said it had thwarted Iranian missile attacks targeting Bahrain, Kuwait, and other locations in the region.

The OECD has sharply cut its global growth outlook and warned that a prolonged U.S.-Iran conflict could push global growth close to recession levels.

While the German DAX Index is down by 0.9 percent, the U.K.'s FTSE 100 Index and the French CAC 40 Index are both down by 0.3 percent.

Spanish fashion giant Inditex jumped 6 percent after it posted 8.8 percent growth in Q1 sales, driven by Zara's summer collections and strategic store optimizations.

Customized electronics manufacturer DiscoverIE Group fell nearly 2 percent in London despite posting record earnings for the year to March 2026.

Discount retailer B&M European Value Retail soared 16 percent after annual profit fell less than expected.

Electricals retailer Currys advanced 1.4 percent after appointing Fredrik Tonnesen as Group Chief Executive Officer.

U.S. Economic News

A report released by payroll processor ADP on Wednesday showed private sector employment in the U.S. jumped by slightly more than expected in the month of May.

ADP said private employment shot up by 122,000 jobs in May after increasing by a downwardly revised 105,000 jobs in April.

Economists had expected private sector employment to surge by 117,000 jobs compared to the addition of 109,000 jobs originally reported for the previous month.

"Hiring was more broad-based in May than we've seen in the last few years," said ADP Chief Economist Dr. Nela Richardson. "The labor market continues to show sustained momentum going into the summer hiring season."

At 9 am ET, Federal Reserve Governor Michael Barr is due to participate in a conversation before the Community Development Bankers Association Peer Forum 2026.

The Institute for Supply Management is scheduled to release its report on service sector activity in the month of May at 10 am ET.

The ISM's services PMI is expected to inch up to 53.7 in May from 53.6 in April, with a reading above 50 indicating growth.

Also at 10 am ET, the Commerce Department is due to release its report on factory orders in the month of April. Factory orders are expected to surge by 4.3 percent.

The Energy Information Administration is scheduled to release its report on crude oil inventories in the week ended May 29th at 10:30 am ET. Crude oil inventories are expected to decrease by 4 million barrels.

At 2 pm ET, the Federal Reserve is due to release its Beige Book, a compilation of anecdotal evidence on economic conditions in each of the twelve Fed districts.