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U.S. stock index futures fell on Thursday as investors adopted a cautious stance following the announcement of a framework trade agreement between Washington and Beijing, and amid growing tensions in the Middle East.
At 05:30 ET (09:30 GMT), Dow Jones Futures were down by 260 points, or 0.6%, S&P 500 Futures dropped 22 points, or 0.4%, and Nasdaq 100 Futures slid 130 points, or 0.6%.
The main Wall Street indices ended mostly lower on Wednesday, with the broad-based S&P 500 snapping its three-day win streak, declining 0.3% and sitting just over 2% below its record high set in late February.
Caution Over Trade Deals
Investor sentiment remained cautious after U.S. President Donald Trump claimed that a trade deal with China was essentially “done,” pending approval from both the U.S. and Chinese presidents. Speaking to reporters on Wednesday, Trump said that the White House was “rocking in terms of deals” and that many countries were eager to negotiate trade agreements with the U.S.
He also revealed plans to send letters to major U.S. trading partners within the next two weeks, outlining his trade tariff intentions ahead of a July 9 deadline to finalize trade deals with his administration. Trump indicated that the U.S. would offer trade deals that countries could either accept or reject, which could imply that steep tariffs would be imposed if negotiations don’t progress.
Despite the optimistic tone on trade, the uncertainty around the details of the deal and the looming tariff threats kept investors on edge. Trump had previously extended his tariffs under a 90-day pause to allow for further negotiations, but with the deadline fast approaching, progress on new agreements has been slow. Currently, the U.S. has only one trade deal in place with Britain.
Middle East Tensions Add to Uncertainty
Adding to the market’s unease, Trump confirmed on Wednesday evening that the U.S. was evacuating personnel from the Middle East, raising fears of a potential military escalation with Iran. Nuclear talks with Iran had been seen as progressing poorly, with a two-month deadline for a deal set to expire this week. Investors are concerned that tensions could escalate, further destabilizing the region and affecting global markets.
Economic Data on the Horizon
Investors are also looking ahead to the upcoming U.S. economic data, including the Producer Price Index (PPI) inflation report and weekly jobless claims. These figures will offer more insights into the state of the U.S. economy, especially in light of the recent volatile trade policies.
Wednesday’s softer-than-expected consumer inflation data did little to inspire confidence, although it did suggest that the anticipated inflationary impact from Trump’s tariffs has yet to fully materialize.
Oracle’s Strong Earnings Lift Stock
On the corporate front, shares in Oracle (NYSE: ORCL) surged in premarket trading after the cloud computing company raised its annual revenue growth forecast and reported strong demand from clients seeking to leverage artificial intelligence. Oracle’s CEO Safra Catz said in a post-earnings call that the company expected total revenue for its 2026 fiscal year to reach at least $67 billion, implying an annual growth rate of roughly 16.7%, surpassing its previous growth forecast of 15%.
The cautious tone in U.S. stock futures on Thursday reflects concerns over trade deal uncertainties, the potential for military escalation in the Middle East, and the upcoming economic data that will provide further clarity on the U.S. economic outlook. While Oracle’s strong earnings offer a bright spot, broader market sentiment remains tentative amid these geopolitical and trade-related headwinds.
