US Futures Fall as Oil Prices Surge and Inflation Concerns Reignite Amid West Asia Uncertainty
Wall Street Futures Decline After Volatile Trading Session
US stock futures moved sharply lower on Thursday following a volatile trading session on Wall Street, as rising crude oil prices intensified concerns about inflation and ongoing uncertainty surrounding the conflict in West Asia.Futures linked to the Dow Jones Industrial Average dropped nearly 450 points, indicating a weak start for the benchmark index. Futures for the S&P 500 fell by around 50 points, while Nasdaq futures declined by nearly 200 points, reflecting broad risk aversion among investors.
The decline in futures comes after a turbulent session on Wednesday, when markets struggled with energy price volatility and geopolitical risks.
Crude Oil Prices Jump Over 7%
Oil prices rebounded sharply after a short period of stability, adding fresh pressure on global markets.Both Brent crude and US crude oil prices rose more than 7% in early Thursday trading. Brent crude climbed back to around $100 per barrel, while West Texas Intermediate (WTI) surged past $93 per barrel.
The sharp increase in energy prices has renewed worries about inflation and its potential impact on global economic growth.
Inflation Data Meets Expectations but Risks Remain
US inflation data released on Wednesday evening met market expectations. Headline inflation came in at 2.4%, while core Consumer Price Index (CPI) stood at 2.5%, also in line with forecasts.Despite the stable data, concerns remain that the figures reflect past conditions and may not fully capture the economic impact of the ongoing conflict in West Asia. Market participants fear that supply chain disruptions and higher energy costs could push prices higher in the coming months.
Rising Fertilizer Costs Could Push Food Inflation Higher
Beyond energy markets, rising fertilizer costs could also contribute to inflationary pressure.Stephanie Roth, chief economist at Wolfe Research, noted that fertilizer shortages could increase agricultural production costs, which may eventually affect food prices.
According to Roth, the disruption could increase food inflation in the US by around 2 percentage points, adding 0.15% to headline inflation, while higher energy prices could contribute an additional 0.4% increase.
Wall Street Ends Mixed After Intraday Volatility
During Wednesday’s trading session, US markets experienced significant fluctuations.The Dow Jones Industrial Average closed lower by about 300 points, while the S&P 500 and Nasdaq managed to recover from their intraday lows, finishing the session near unchanged levels.
Dollar Strengthens While Precious Metals Remain Volatile
The US Dollar Index resumed its upward movement, trading around the 99.5 level against a basket of major currencies.Meanwhile, gold and silver prices remained volatile, with gold holding above $5,100 and silver trading above $85 per ounce, showing no clear directional trend amid ongoing geopolitical and inflation concerns.
US Launches Section 301 Probe Into Tariff Policies
Separately, the Trump administration has launched a Section 301 investigation into India and 15 other countries as part of efforts to replace the reciprocal tariff regime.The move follows a ruling by the US Supreme Court last month, which deemed the existing tariff framework illegal. The investigation is expected to review trade policies affecting multiple countries as the administration considers a new approach.
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