Stocks steady as Middle East tensions lift oil, Fed minutes in focus
U. S. equity futures were little changed on Tuesday as investors balanced escalating Middle East risks and a jump in crude prices with anticipation of the Federal Reserve’s June meeting minutes due on Wednesday at 2pm ET.
8th July 2026 – (New York) U. S. equity futures were little changed on Tuesday as investors balanced escalating Middle East risks and a jump in crude prices with anticipation of the Federal Reserve’s June meeting minutes due on Wednesday at 2pm ET. Dow futures slipped by around 29 points, while contracts on the S&P 500 and Nasdaq 100 eased roughly 0. 1%. Energy markets firmed after the U. S. launched what it called a “series of powerful strikes” against Iran in response to attacks on three commercial vessels in the Strait of Hormuz. The US Treasury also revoked a licence permitting Iranian oil sales. West Texas Intermediate rose more than 2% to push above $72 a barrel, with later trades seeing gains extend. The backdrop followed a weaker cash session on Wall Street. The Dow Jones Industrial Average retreated 0. 25% to 52,925. 15 after notching an intraday high, the S&P 500 fell 0. 45% to 7,503. 85 and the Nasdaq Composite dropped 1. 16% to 25,818. 69 as investors rotated away from artificial‑intelligence beneficiaries. Micron led chipmakers lower, with KLA, Marvell Technology, Broadcom and AMD also down; the VanEck Semiconductor ETF shed more than 3%. Nvidia, however, reversed earlier losses to trade about 1% higher in the afternoon. Oil’s advance added to the risk‑off tone. Brent settled up about 3% at $74. 16 and WTI nearly 3% at $70. 44 before both benchmarks extended gains after the US move to revoke Iran’s waiver. A US‑led naval coalition warned that the threat level to merchant shipping in the Strait of Hormuz had risen to “severe,” citing a likelihood of “deliberate hostile action. ”Attention now turns to the Federal Open Market Committee minutes for clues to Chair Kevin Warsh’s first policy meeting, where rates were held steady and officials signalled further increases remain possible if inflation pressures persist. Some analysts expect a hawkish tint, noting the prior press conference offered fewer details than usual on the policy debate. Asia‑Pacific markets were poised to open softer on Wednesday amid the geopolitical jitters. Chicago‑traded futures for Japan’s Nikkei 225 were at 67,725 versus the cash close of 68,256. 96. Australia’s S&P/ASX 200 futures stood at 8,743 against the index’s 8,803. 90 finish, while Hang Seng futures were near 23,499, broadly in line with the prior close. Globally, tech sentiment wobbled after South Korea’s Kospi slumped nearly 5%, following an almost 7% drop in Samsung Electronics despite a strong second‑quarter profit headline, as spending and demand concerns overshadowed results. In Europe, the Stoxx 600 finished about 0. 7% lower. Reuters also reported that DeepSeek is developing its own AI chip, potentially reducing reliance on suppliers such as Nvidia and Samsung. Rotation into perceived havens within equities was evident, with healthcare, financials and mega‑cap tech outperforming pockets of the AI complex. Eli Lilly rose nearly 3%, while JPMorgan Chase, Microsoft and Walmart also advanced after the retailer announced price cuts on staples including ground beef and Coca‑Cola. SpaceX fell more than 6% after joining the Nasdaq‑100, a move some read as a modest risk‑off signal despite upbeat analyst initiations. In corporate developments, Hong Kong‑listed AI model group Z. ai (Knowledge Atlas) said nearly 70% of cornerstone investors plan to retain holdings beyond the expiry of the six‑month lock‑up on Wednesday. The Beijing firm, whose shares have surged about 1,200% since a January debut, has flagged intentions to pursue a mainland A‑share listing. Separately, PBOC Governor Pan Gongsheng told a Hong Kong summit that Beijing would continue backing listings of “high‑quality” companies there and would lift the annual quota for mainland investment in Hong Kong and Macao‑traded bonds by 300 billion to 800 billion yuan (about $44bn to $118bn).