The US stock market is likely to open in the red in Wednesday’s trading session, as the futures of the three key averages — the S&P 500, Dow Jones Industrial Average, and Nasdaq — are trading with modest losses of 0.12%, 0.06%, and 0.06%, respectively, in pre-market trade.
Tensions in the Middle East continue to escalate for the fifth day in a row on 4 March, as the US, Israel, and Iran have accelerated their attacks on each other.
Investors are worried that rising energy prices may ripple through the economy, pushing up costs at a time when they are hoping inflation will ease enough to prompt the Federal Reserve to cut interest rates again later this year.
US forces continued a round-the-clock assault on Iran, while Israel mounted a “broad wave” of strikes on Wednesday, targeting Iranian missile sites and air defence systems. Tehran also continued its drone and missile strikes across the region. Reportedly, Saudi Aramco’s Ras Tanura crude oil refinery was attacked by Iran, marking the second such attack this week.
Iran is targeting military bases, civilian areas, and oil infrastructure across the Gulf region. The conflict is unlikely to abate anytime soon.
President Donald Trump said on Tuesday that the US would provide risk insurance for all maritime trade through the Persian Gulf, in an effort to get tankers moving through the Strait of Hormuz.
Tanker traffic through the Strait — the world’s most vital transit route for crude oil — came to a halt after an Iranian Revolutionary Guard commander threatened to set fire to ships attempting the route.
Trump to meet tech leaders
Trump is set to meet on Wednesday with leaders of major technology companies, including Google, Meta, and OpenAI, to formalize a pledge aimed at protecting consumers from rising electricity costs tied to the rapid expansion of energy-intensive data centres.
Meanwhile, executives from US defence contractors are expected to meet officials at the White House on Friday to discuss speeding up weapons production after recent military operations, Reuters reported, citing sources familiar with the matter.
(With inputs from Reuters)
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