US pre-open: Futures lower as crude rebounds, Middle East tensions linger

Wall Street futures were in the red ahead of the bell on Tuesday as oil prices resumed their upward march.

As of 1215 GMT, Dow Jones futures were down 0.45%, while S&P 500 and Nasdaq-100 futures were down 0.30% and 0.30%, respectively.

The Dow closed 631 points higher on Monday on the back of renewed hopes that the US and Israel’s conflict with Iran may soon draw to a close after Donald Trump said Washington and Tehran had held “very good and productive conversations” aimed at resolving hostilities in the Middle East. However, Iranian state media later denied that any direct talks had taken place.

Trump’s comments came after he threatened strikes on Iranian power plants if the Strait of Hormuz was not reopened, while Tehran warned it would target US infrastructure in retaliation.

Oil prices moved higher in pre-market action, trimming some of Monday’s sharp losses as traders assessed the latest developments in the conflict. Brent crude was up more than 2.83% at $102.77 a barrel, while West Texas Intermediate rose 3.49% to $91.21 a barrel.

On the macro front, fourth quarter non-farm productivity figures will be out at 1230 GMT, while preliminary readings of S&P’s manufacturing, services and composite PMIs will follow at 1345 GMT, and the Richmond Federal Reserve‘s March manufacturing index was slated for release at 1400 GMT.

In the corporate space, meme stock favourite Game Stop will report earnings after the close.

Reporting by Iain Gilbert at Sharecast.com