US pre-open: Futures slump as Trump threatens to send Iran 'back to the stone ages'

(Sharecast News) - Wall Street futures were firmly in the red ahead of the open on Thursday after Donald Trump threatened to "hit" Iran "extremely hard". As of 1230 BST, Dow Jones futures were down 1.15%, while S&P 500 and Nasdaq-100 futures had the indices opening 1.36% and 1.79% lower, respectively.

The Dow closed 224.23 points higher on Wednesday, building on solid gains recorded in the previous session.

Futures headed south after Trump delivered an address on Wednesday night, saying the US was "getting very close" to ending its conflict with Iran but warned that Washington would continue to strike Tehran over the next few weeks, and that he was seeking to push the Middle Eastern nation "back to the stone ages where they belong".

Oil prices also jumped during the speech, with West Texas Intermediate last seen 5.91% higher at $106.04 a barrel, and Brent crude gaining 6.21% to trade at $107.44 a barrel.

Trade Nation's David Morrison said: "Trump promised an intense bombardment to conclude the war but insisted that he would only accept a ceasefire once the Strait of Hormuz was 'open, free, and clear'. This contrasted with earlier reporting that he had been willing to end the military campaign even if the Strait remained closed, creating considerable uncertainty around policy direction and contributing to volatility across markets.

"In this regard, he called on countries that benefitted from the Strait to join in the effort to unblock it. He also said that the US had chosen not to hit Iran's oil facilities but may target its electricity supply in the coming weeks. Overall, it was an upbeat performance which pleased his fans and enraged his opponents."

On the macro front, March's Challenger job cuts report will be released at 1230 BST, while weekly jobless claims data from the Labor Department will follow at 1330 BST.

No major corporate earnings were slated for release on Thursday.

Wall Street traders will take a break tomorrow for the Good Friday holiday.





Reporting by Iain Gilbert at Sharecast.com