Key Takeaways

• Futures ease: S&P 500 futures fell 0.2% to 7,525.20, Nasdaq 100 futures dropped 0.5% to 29,890.75, and Dow futures ticked down 0.1% to 50,703.0.
• Record session overnight: All three major indexes hit all-time closing highs after Iranian state media reported a draft Hormuz framework was being discussed.
• Fresh U.S. strikes: Overnight reports of new U.S. military strikes on an Iranian military site underscored the fragility of peace negotiations.
• Trump rejects Iran-Oman control: The president dismissed reports that Tehran and Muscat would jointly manage Hormuz shipping.
• Oil rebounds 4%: Crude climbed sharply after tumbling more than 5% in the previous session on peace deal optimism.
• PCE data the day’s test: Analysts expect headline PCE to rise 0.5% month-on-month, with core PCE projected at 0.3%.
• Rate hike risk: A hotter-than-expected reading could reinforce bets on prolonged Fed holds or even rate hikes.
• Treasury yields tick up: The 10-year yield hovered near 4.53% after retreating from recent highs.
• Tech in focus: The AI-driven Nasdaq rally continues to capture investor attention after a record-setting week.

U.S. stock futures fell during Asian trading on Tuesday after Wall Street’s record-setting rally, as uncertainty surrounding U.S.-Iran peace negotiations and caution ahead of a key inflation report kept traders on edge.

S&P 500 futures eased 0.2% to 7,525.20 points, while Nasdaq 100 futures fell 0.5% to 29,890.75 points by 00:23 ET (04:23 GMT). Dow Jones futures ticked down 0.1% to 50,703.0 points.

All three major indexes notched record high closes in the regular session after reports from Iranian state media suggested that Washington and Tehran were discussing a draft framework that could eventually reopen the Strait of Hormuz and restore commercial shipping flows.

Iran Strikes Resume, Rally at Risk

However, reports emerged overnight of fresh U.S. military strikes on an Iranian military site — underscoring the fragility of negotiations and the risk of renewed escalation in the region.

The attacks came shortly after U.S. President Donald Trump dismissed a report that Iran and Oman would jointly manage shipping through the Strait of Hormuz under a proposed agreement aimed at ending the conflict.

Oil prices rebounded in Asian trading following the reports, with U.S. crude climbing 4% after tumbling more than 5% in the previous session.

PCE Inflation Data in the Spotlight

Markets are also bracing for the release of the U.S. Personal Consumption Expenditures (PCE) price index later on Thursday — the inflation gauge most closely watched by the Federal Reserve. Analysts expect headline PCE inflation to rise 0.5% month-on-month, while core PCE is forecast to increase 0.3%.

A hotter-than-expected reading could reinforce expectations that the Fed may keep interest rates elevated for longer, or may even opt to raise them.

Treasury yields rose modestly after falling in the previous session alongside oil prices. The benchmark 10-year Treasury yield hovered near 4.53% after retreating from recent highs.

Technology shares remained in focus after a strong AI-driven rally pushed the Nasdaq to fresh records this week.