Futures Lower Amid Middle East Violence; Vance-Walz Debate

Investing.com — U.S. stock futures fell as traders eyed continued violence in the Middle East. Iran says its aerial bombardment of Israel has ended, although Israeli leaders have promised a response to the attack. The attack, itself retaliation for Israeli attacks on Lebanon’s Hezbollah, weighed on Wall Street shares in the previous session.

1. Smaller futures

U.S. stock futures pointed lower on Wednesday as investors worried about escalating tensions in the Middle East, which weighed heavily on stocks in the previous session.

By 03:42 ET (0742 GMT), the contract was down 111 points, or 0.3 percent, and had lost 8 points, or 0.1 percent, and was down 30 points, or 0.1 percent.

Wall Street’s main indexes slipped on Tuesday, dragged down by an Iranian missile attack on Israel. The 30-stock index fell 174 points, or 0.4%, the benchmark index fell 54 points, or 1.0%, and the technology industry retreated 279 points, or 1.5% — though indices they ended their intraday lows.

Despite broader market weakness, shares of energy groups rose, reflecting a rise in oil prices. Defense stocks, incl Northrop Grumman (NYSE: ) and Lockheed Martin (NYSE: ) also moved higher.

2. Iran says missile attack on Iran is over

Iran said its barrage on Israel — its largest ever on the country — was over, but warned it would resume the attack if there were further provocations.

Meanwhile, Israel could launch a “significant” response in the coming days that could target Iran’s oil production facilities and other strategic sites, according to US news site Axios.

Israeli Prime Minister Benjamin Netanyahu vowed retaliation for Tehran’s airstrikes, saying in a statement on Tuesday that Iran had “made a big mistake” and “will pay for it.”

The US also said there would be “serious consequences” for Tehran’s actions, with Defense Secretary Lloyd Austin adding that Washington was “well placed” to defend its interests in the Middle East.

Iran’s attack was triggered by Israel’s recent attacks on Hezbollah in Lebanon, as well as the ongoing war in Gaza, Tehran said. The US, UN and European Union called for a ceasefire in Lebanon, but fighting continued there on Wednesday morning.

3. Oil rises amid Middle East violence

Oil prices rose on Wednesday, extending strong gains from the previous session, as rising tensions in the Middle East raised fears that crude production could be disrupted from the oil-rich region.

By 03:43 ET, the contract was up 2.6% at $75.50 a barrel, while WTI futures traded 2.8% higher at $71.80 a barrel . Both crude benchmarks rose more than 5 percent on Tuesday after Iran’s attack on Israel.

Elsewhere, the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, are due to meet later in the session, but no changes in output are expected at this time.

U.S. crude inventories fell by about 1.46 million barrels in the week ended Sept. 27, compared with expectations for a decline of about 2.1 million barrels, according to data from the American Petroleum Institute. The official government inventory report is due to be released on Wednesday.

4. Vance-Walz Debate

US vice presidential candidates JD Vance and Tim Walz weighed in on the qualities of their fellow leaders and the achievements of the last two administrations in their only debate on Tuesday.

Vance, Donald Trump’s Republican vice-presidential running mate, delivered a polished defense of the former president, touting his economic record in particular.

Walz, who is on the ticket with Democrat Kamala Harris, was more reserved early in the debate but found her stride when she dropped Trump’s repeated denials that he had lost the 2020 presidential race.

Although the conversation became heated at times, the meeting as a whole was notable for its relatively civil tone compared to an earlier on-stage exchange between Trump and Harris last month.

5. NIKE remove annual guidance

Shares of Nike (NYSE: ) sank in extended trading hours after the US athletic apparel maker withdrew its full-year financial guidance and posted a 10% drop in quarterly revenue.

Oregon-based Nike said sales fell to $11.59 billion in the three months to the end of August. Analysts polled by Investing.com were anticipating $11.65 billion. Net income, meanwhile, fell 28% to $1.1 billion.

The results come as Nike undergoes an executive shake-up that will see boss John Donahoe replaced by company veteran Elliott Hill. Donahoe has overseen a period of poor performance fueled by fierce competition in the $150 billion-a-year global sneaker market.

Chief Financial Officer Matthew Friend said Nike’s decision to drop guidance for fiscal 2025 is due to the upcoming leadership transition. Nike will instead provide quarterly forecasts, Friend added, with the company expecting to report an 8% to 10% decline in revenue in the current three-month period.

(Reuters contributed reporting.)