US futures declined in early trading Thursday following a steep selloff in the previous session, where the Dow Jones Industrial Average closed at its lowest point of 2026. Concerns over inflation and heightened geopolitical tensions in the Middle East are putting renewed pressure on risk assets.
At 4:35 p.m. (Bangkok Time), futures for the Dow Jones shed 0.16%, while contracts tied to the S&P 500 and Nasdaq 100 slipped 0.20% and 0.32%, respectively. The declines came after the Dow dropped 1.63% on Wednesday, led lower alongside a 1.36% fall in the S&P 500 and a 1.46% retreat for the Nasdaq Composite.
Escalation in the Iran war shook global energy markets over the last 24 hours after attacks hit a series of vital energy facilities, including Iran’s South Pars gas site, the world’s largest. Iranian forces answered with strikes targeting infrastructure across the Middle East. QatarEnergy, Qatar’s state oil company, confirmed considerable damage at the Ras Laffan industrial complex, which serves as a central liquefied natural gas export terminal.
Amid the flare-up, President Donald Trump warned via social media that the U.S. could take military action on the South Pars gas field if Iran continues attacks against Qatar.
Also on Thursday, oil benchmarks soared on the developments. Brent crude futures surged 9.72% to $117.82 a barrel on Thursday, while West Texas Intermediate crude advanced 2.42% to $97.77.
Among notable movers, Micron Technology shares dropped more than 4% in after-hours trading. The semiconductor company’s latest quarterly revenue nearly tripled, driven by a shortage in memory supply, but heavy CAPEX weighed on investors sentiment.
Market anxieties were stoked further as Federal Reserve Chair Jerome Powell flagged uncertainty surrounding the Iran war’s economic impact. The central bank opted to keep interest rates unchanged and continued to project a single rate reduction in 2026, adjusting its inflation outlook higher as well.
A stronger-than-expected producer price inflation report compounded investor fears, raising the prospect the U.S. could face slower growth paired with increased price pressures.
Despite the recent volatility, investors are looking for stability, citing an ongoing trend of solid corporate earnings and steady consumer demand. The outcome of the Iran conflict is likely to remain the principal risk for market direction in the near term.
Looking ahead, investors await new jobless claims data and the Philadelphia Fed Manufacturing Index, both scheduled for release Thursday morning.
