Mixed Futures as Middle East Strikes Rattle Markets

U.S. S&P 500 futures turned negative Wednesday morning, Benzinga reported, as geopolitical risk shook investor confidence. This followed a record-setting close on Tuesday. Futures for the Dow Jones and S&P 500 both edged lower, while Nasdaq 100 contracts held fractionally positive.

U.S. Forces Hit Iranian Site Near Strait of Hormuz

The catalyst was a U.S. military strike on an Iranian ground control station located on Qeshm Island. The strike came in response to Iranian missile attacks targeting Kuwait and Bahrain. The Strait of Hormuz, a critical global oil chokepoint, sits adjacent to the site. Adding to the diplomatic strain, Israeli Prime Minister Benjamin Netanyahu reportedly received a tense phone call from President Donald Trump just one day before the Iranian missile launches.

The 10-year Treasury yield held at 4.48%, while the two-year note sat at 4.07%. Markets are pricing a near-certain probability of the Federal Reserve holding rates steady at its June meeting, with CME Group’s FedWatch tool showing a 98.4% likelihood of no change.

Stocks to Watch — Earnings and Buybacks in Focus

Cybersecurity firm Palo Alto Networks (PANW) fell more than 4.5% in premarket trading. The drop came despite the company beating third-quarter estimates and lifting its full-year guidance. Shopify (SHOP) moved modestly higher after expanding its share repurchase program by $3 billion, bringing the cumulative buyback authorization to $5 billion.

Chipmaker Broadcom (AVGO) climbed more than 3% ahead of its post-close earnings report. Analysts are forecasting earnings of $2.40 per share on revenue near $22 billion. CrowdStrike (CRWD) edged lower ahead of its own results, with analyst estimates ranging from $0.78 to $1.07 per share on revenue of approximately $1.36 billion.

Also Read: Nvidia Earnings Preview: What Wall Street Expects

Background — A Market on Record Ground

Tuesday’s session saw most S&P 500 sectors close higher, with utilities, materials, and industrials leading advances. Health care and communication services were the lone laggards. The broader index had just logged a record close, extending a rally built on resilient corporate earnings and easing trade concerns.

Wharton School professor Jeremy Siegel weighed in bullishly, downplaying recession fears despite first-quarter GDP being revised down to 1.6%. Siegel pointed to three consecutive months of above-average M2 money supply expansion as evidence that financial conditions remain supportive. He projected second-quarter growth between 2% and 3%.

Geopolitics Adds a New Layer of Uncertainty

Wednesday’s premarket moves reflect how quickly geopolitical flashpoints can complicate an otherwise constructive market backdrop. Investors will now watch both Broadcom’s results and any further escalation near the Strait of Hormuz for direction into the week’s close.

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