In Wednesday's premarket activity, US benchmark equity indexes were tracking in the red as investors evaluate market risks stemming from escalating tensions in the Middle East. The Standard & Poor's 500 index declined by 0.2%, while the Dow Jones Industrial Average fell by 0.3%, and the Nasdaq experienced a slight decrease of 0.1% before the opening bell.
Asian exchanges exhibited mixed results, trending lower, whereas European bourses showed a predominantly positive outlook. The situation intensified on Tuesday when Iran executed a missile strike on Israel as a response to the recent killing of Hezbollah leader Hassan Nasrallah and an Iranian commander in Lebanon, according to various media sources.
Investors are closely monitoring these developments, which could have substantial implications for market stability. In the energy sector, West Texas Intermediate crude oil saw an increase of 3.3%, reaching $72.11 per barrel. Concurrently, yields on 10-year Treasuries rose by 2.1 basis points to 3.76%.
However, gold prices decreased by 0.6%, settling at $2,673 per ounce. Bitcoin noted a slip of 0.8%, trading at $61,390. On the equity front, shares of Nike (NKE) took a hit, dropping 5.6% in premarket trading as the sportswear giant retracted its fiscal 2025 guidance and postponed its investor day event.
Lamb Weston (LW) fell by 5.2% as the company revised its full-year adjusted earnings outlook downwards. In addition, Tesla (TSLA) saw a decline of 1% as investors await essential disclosures regarding the electric vehicle maker's third-quarter deliveries report. Investors also turned their attention to RPM International (RPM) and ConAgra Brands (CAG), both of which are set to release their latest financial results before the market opens.
Meanwhile, Levi Strauss (LEVI) is expected to post its earnings report following the market close. From an economic perspective, the weekly mortgage applications bulletin is scheduled for release at 7 am ET, followed by the ADP Employment Report for September at 8:15 am. Additionally, the weekly EIA domestic petroleum inventories report is due at 10:30 am, which will provide insights into the energy market trends. Key appearances are also lined up, with Federal Reserve Bank of Cleveland President Beth Hammack slated to speak at 9 am.
St. Louis Fed President Alberto Musalem is to speak shortly after at 10:05 am, followed by Fed Governor Michelle Bowman at 11 am, and Richmond Fed President Thomas Barkin at 12:15 pm. Investors will be paying close attention to these speeches for hints on future monetary policy..