TLDR
- U.S. stock futures dropped Thursday morning with Dow futures down 0.7% and S&P 500 futures falling 0.5% due to Middle East tensions and trade uncertainty
- Boeing shares plunged 7.6% premarket after an Air India Boeing 787-8 Dreamliner crashed in Ahmedabad with over 200 people aboard
- President Trump moved U.S. personnel out of the Middle East region calling it “dangerous” while threatening Iran cannot have nuclear weapons
- China confirmed a trade deal with the U.S. while Trump renewed threats to impose “take it or leave it” tariffs on trading partners within weeks
- Markets await May Producer Price Index inflation data due at 8:30 AM ET after Wednesday’s consumer inflation report showed easing price pressures
U.S. stock index futures declined Thursday morning as investors grappled with rising Middle East tensions and continued uncertainty over President Trump’s trade policies. The Dow Jones Industrial Average futures fell approximately 0.7%, while S&P 500 futures dropped 0.5%.
The market pullback comes as multiple geopolitical and economic factors converge to create investor anxiety. Boeing shares suffered the steepest decline, falling 7.6% in premarket trading after a tragic aviation incident.
An Air India Boeing 787-8 Dreamliner crashed in India’s western city of Ahmedabad with more than 200 people aboard. The aviation tracking site Flightradar24 confirmed the aircraft model involved in the accident.
#BREAKING: AIR INDIA FLIGHT #AI171 CRASHES IN AHMEDABAD SHORTLY AFTER TAKEOFF
Following reports of a crash involving Air India flight #AI171 from Ahmedabad to London Gatwick. The Boeing 787-8 Dreamliner (reg: VT-ANB) lost signal at 08:08:51 UTC, just seconds after takeoff.… pic.twitter.com/RKFhipU1ll— Turbine Traveller (@Turbinetraveler) June 12, 2025
Tesla shares lost 1.7% while Nvidia declined about 1.1% in premarket trading. The tech-heavy Nasdaq 100 futures fell 0.5% as technology stocks faced pressure.
President Trump escalated tensions in the Middle East by announcing the movement of U.S. personnel out of the region. He described the area as potentially “dangerous” and reiterated that the United States would not allow Iran to have nuclear weapons.
Middle East Tensions Rise
The president’s comments came just days before a planned sixth round of nuclear talks between the United States and Iran. A senior Iranian official responded by threatening to strike U.S. bases in the region if nuclear negotiations fail and conflict arises.
Trump’s decision to relocate American personnel underscores the volatile situation developing in the Middle East. The timing creates additional uncertainty as diplomatic efforts continue through nuclear negotiations.
Trade Policy Uncertainty Continues
China affirmed a trade deal with the United States on Thursday, attempting to strengthen what remains a delicate truce in the ongoing trade war. Lin Jian, a foreign ministry spokesperson for China, stated that both sides should abide by the consensus reached.
Traders sought more details on the trade framework discussed by officials from both countries during a two-day meeting in London earlier this week. The discussions represent ongoing efforts to stabilize U.S.-China trade relations.
Trump renewed his threat to impose “take it or leave it” tariffs on trading partners within the coming weeks. He stated that U.S. trading partners would receive letters setting unilateral tariff rates, giving them limited options to negotiate.
Treasury Secretary Scott Bessent told Congress it’s “highly likely” that countries currently in trade negotiations with the U.S. will receive extensions beyond the current 90-day tariff pause. The pause is set to expire on July 9.
At 6:48 a.m. ET, Dow E-minis were down 269 points or 0.63%. S&P 500 E-minis fell 25.5 points or 0.42%, while Nasdaq 100 E-minis dropped 74 points or 0.34%.
Some companies bucked the downward trend, with Oracle shares rising 7.7% after the cloud service provider raised its annual revenue growth forecast. The company cited increased demand from businesses deploying artificial intelligence technologies.
Gold mining stocks advanced as bullion prices reached a one-week high. Newmont gained 1.5%, Harmony Gold rose 3.5%, and AngloGold Ashanti increased 4.2%.
Markets await the May Producer Price Index data scheduled for release at 8:30 a.m. ET, along with initial jobless claims data. This follows Wednesday’s consumer inflation report that showed easing price pressures despite Trump’s tariff increases in April.
Economic Data in Focus
The benchmark S&P 500 index currently trades 2% below its record high reached in February. The tech-heavy Nasdaq remains about 2.7% from record levels hit in December.
Citigroup strategists noted in a client note that May data might be too early to show tariff impacts, but softer demand could be limiting price increases. They expect larger tariff effects to emerge later in the summer.
Shares of nuclear technology firm Oklo fell 5.8% after the company, backed by Sam Altman, launched a $400 million stock offering. The move comes as the nuclear energy sector faces mixed investor sentiment.
The Federal Reserve faces a complex situation ahead of its upcoming policy meeting next week, with bets on interest-rate cuts mounting despite officials’ wait-and-see approach to economic data and policy decisions.
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