Futures Decline Amid Middle East Violence; Vance-Walz Debate

US stock futures are experiencing a decline as investors react to ongoing violence in the Middle East. Iran has announced that its missile strikes on Israel are complete, although Israeli officials have promised a significant retaliation. This escalation, which was a response to prior Israeli attacks on Hezbollah in Lebanon, negatively impacted Wall Street’s performance in the previous session.

1. Futures Decline
On Wednesday, US stock futures were lower, reflecting investor anxiety over heightened tensions in the Middle East that had already adversely affected equities the day before. By 03:42 ET, futures on major indices had fallen, with one showing a drop of 111 points (0.3%), another down 8 points (0.1%), and a third down 30 points (0.1%).

The primary indices on Wall Street also slipped on Tuesday, influenced by the Iranian missile assault on Israel: the Dow Jones Industrial Average fell 174 points (0.4%), the S&P 500 decreased 54 points (1.0%), and the Nasdaq dropped 279 points (1.5%), though all indices ended higher than their intraday lows. Despite the overall market downturn, energy stocks gained, mirroring a rise in oil prices, and defense companies saw increases as well.

2. Iran Claims Missile Attack Halted
Iran has declared the end of its largest-ever missile attack on Israel but cautioned that further strikes could resume if provoked. Israeli leaders have indicated plans for a significant response, possibly targeting Iranian oil facilities and other strategic sites. Prime Minister Benjamin Netanyahu asserted that Iran "made a big mistake" that would have consequences. The US has warned of "severe consequences" for Iran’s actions and affirmed its military readiness in the region.

Iran’s actions are reportedly linked to recent Israeli strikes on Hezbollah and the ongoing conflict in Gaza. Calls for a ceasefire have come from the US, the United Nations, and the European Union, though fighting in Lebanon continues.

3. Oil Prices Surge Amid Tensions
Oil prices have risen sharply on Wednesday, continuing the gains from the previous session due to fears of potential disruptions to crude oil production in the volatile Middle East. By 03:43 ET, one oil contract climbed 2.6% to $75.50 per barrel, while West Texas Intermediate (WTI) rose 2.8% to $71.80 per barrel, both benchmarks rising more than 5% following the Iranian attack. The Organization of the Petroleum Exporting Countries (OPEC+) is set to convene later, but no output changes are anticipated. Additionally, US crude inventories reportedly decreased by about 1.46 million barrels, a smaller drop than what analysts had estimated.

4. Vice Presidential Debate Summary
In a recent debate, US vice presidential candidates JD Vance and Tim Walz exchanged views on their running mates and the accomplishments of past administrations. Vance, the Republican candidate, defended Donald Trump’s economic achievements, while Walz, running with Democrat Kamala Harris, criticized Trump for denying his 2020 election loss. Although the debate included heated moments, it maintained a relatively civil tone compared to previous political exchanges.

5. Nike Withdraws Financial Guidance
Shares of Nike declined in after-hours trading as the company retracted its full-year financial forecasts and reported a 10% drop in quarterly revenue. Nike’s sales fell to $11.59 billion for the quarter ending in August, slightly below analysts’ expectations. Net income also dropped 28% to $1.1 billion. These results coincide with a leadership transition at the company, with John Donahoe being replaced by longtime executive Elliott Hill. The CFO explained that Nike’s decision to withdraw its guidance was related to this executive change, with the company now opting to provide quarterly revenue forecasts, expecting a decline of 8% to 10% in the current quarter.