Dow futures drop 215 points as Brent rises amid Gulf tensions

Dow futures fell about 215 points on Wednesday, while S&P 500 and Nasdaq 100 futures were little changed. The pullback followed a session in which the S&P 500 closed above 7,600 for the first time.

Brent crude climbed about 1.6% to $97.56 a barrel after reports of renewed hostilities in the Gulf region. Reports said an Iranian missile strike damaged Kuwait’s airport and U.S. forces struck near the Strait of Hormuz, a key route for global oil shipments. Traders cited concern that supply disruptions could push energy costs higher.

The Dow futures decline equated to roughly a 0.41% drop. S&P 500 and Nasdaq 100 futures showed little movement after recent gains. Market participants pointed to continued demand for artificial intelligence hardware and upbeat results from technology suppliers as factors keeping benchmarks near record levels.

Chip and networking suppliers remained in focus for investors betting on sustained AI spending. Broadcom rose about 3% ahead of its quarterly results and has gained roughly 14% over the past four trading sessions. Traders expect enterprise spending on AI systems to support revenue at component makers and data center equipment providers.

The IPO calendar drew attention after a period of few large listings. SpaceX plans to set an IPO price at $135 per share and is preparing a roadshow to raise about $75 billion. The offering would rank among the largest in U.S. history. Other private AI companies, including Anthropic and OpenAI, are reported to be preparing possible public listings.

Investors are watching a slate of economic reports this week. S&P Global’s manufacturing and services surveys and the Institute for Supply Management’s services index are due before Friday’s monthly jobs report. Data showing persistent growth or strong employment would affect expectations for Federal Reserve policy given current borrowing costs.

Higher oil prices can raise inflation expectations if supply disruptions persist. Corporate earnings, AI infrastructure demand and the IPO pipeline will remain on traders’ watchlists in the days ahead.