Select Language

US stock futures slump as Middle East conflict enters fifth day

Breaking news

US stock futures slump as Middle East conflict enters fifth day

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
update 2025.06.17 19:58
US stock futures slump as Middle East conflict enters fifth day

update 2025.06.17 19:58

  • US stock futures face selling pressure on mounting tensions between Israel and Iran.
  • Iranian military forces struck ballistic missiles on the Israeli intelligence agency.
  • The Fed is widely anticipated to keep interest rates steady on Wednesday.

US stock index futures face a sharp selling pressure during European trading hours on Tuesday. Investors dump US equity futures as the risk appetite of investors has diminished significantly amid uncertainty surrounding the future of the aerial war between Israel and Iran, and the outcome of the monetary policy by the Federal Reserve (Fed) on Wednesday.

At the time of writing, S&P 500 futures are down 0.6% slightly below the psychological level of 6,000. Down futures ease over 240 points, and slides to near 42,720.

Tensions between Iran and Israel have escalated as Tehran has struck ballistic missiles on Israeli intelligence agency Mossad's headquarters during the European trading session, Tehran Times reported.

Tehran has accelerated attacks on Israel after the Israeli Defence Forces (IDF) confirmed that they have assassinated Ali Shadmani, Iran's senior-most military official and Khamenei's closest military advisor, according to CNBC.

Meanwhile, the US Dollar (USD) trades calmly, with the US Dollar Index (DXY) wobbling around 98.20. The US Dollar should has performed strongly amid heightening geopolitical tensions, however, its upside seems capped ahead of the Fed's monetary policy announcement. Theoretically, demand for safe-haven assets, such as US Dollar, increases amid geopolitical uncertainty.

According to the CME FedWatch tool, the Fed is almost certain to leave interest rates unchanged in the range of 4.25%-4.50%. Therefore, the major trigger that will direct US equity markets will be Fed's guidance on the monetary policy outlook for the remainder of the year, and economic and inflation forecasts.

In Tuesday's session, investors will focus on the US Retail Sales data for May, which will be published at 12:30 GMT. The Retail Sales data, a key measure of consumer spending, is expected to have declined by 0.7% after a 0.1% growth seen in April.

Dow Jones FAQs

The Dow Jones Industrial Average, one of the oldest stock market indices in the world, is compiled of the 30 most traded stocks in the US. The index is price-weighted rather than weighted by capitalization. It is calculated by summing the prices of the constituent stocks and dividing them by a factor, currently 0.152. The index was founded by Charles Dow, who also founded the Wall Street Journal. In later years it has been criticized for not being broadly representative enough because it only tracks 30 conglomerates, unlike broader indices such as the S&P 500.

Many different factors drive the Dow Jones Industrial Average (DJIA). The aggregate performance of the component companies revealed in quarterly company earnings reports is the main one. US and global macroeconomic data also contributes as it impacts on investor sentiment. The level of interest rates, set by the Federal Reserve (Fed), also influences the DJIA as it affects the cost of credit, on which many corporations are heavily reliant. Therefore, inflation can be a major driver as well as other metrics which impact the Fed decisions.

Dow Theory is a method for identifying the primary trend of the stock market developed by Charles Dow. A key step is to compare the direction of the Dow Jones Industrial Average (DJIA) and the Dow Jones Transportation Average (DJTA) and only follow trends where both are moving in the same direction. Volume is a confirmatory criteria. The theory uses elements of peak and trough analysis. Dow's theory posits three trend phases: accumulation, when smart money starts buying or selling; public participation, when the wider public joins in; and distribution, when the smart money exits.

There are a number of ways to trade the DJIA. One is to use ETFs which allow investors to trade the DJIA as a single security, rather than having to buy shares in all 30 constituent companies. A leading example is the SPDR Dow Jones Industrial Average ETF (DIA). DJIA futures contracts enable traders to speculate on the future value of the index and Options provide the right, but not the obligation, to buy or sell the index at a predetermined price in the future. Mutual funds enable investors to buy a share of a diversified portfolio of DJIA stocks thus providing exposure to the overall index.

 


Date

Created

 : 2025.06.17

Update

Last updated

 : 2025.06.17

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

EUR/USD slides below 1.1700 as tariff fears lift Dollar to 2-week high

EUR/USD finished the week with losses of over 0.70% and ended Friday's session down 0.10% trading below the 1.1700 figure, cementing the case for a pullback to test key support levels as the Greenback posts its best week in four months. At the time of writing, the pair trades at 1.1688.
New
update2025.07.12 07:26

Copper prices steady as refining constraints and tariff fears persist

Copper futures are trading near $5.50 per pound on Friday, slipping from Tuesday's high of $5.70 on the daily timeframe.
New
update2025.07.12 06:29

USD/CHF Price Forecast: Holds firm below 0.8000 on US Dollar demand

The USD/CHF consolidates during the North American session, is flat below the 0.8000 figure, poised to finish the week with 0.36% gains. A risk-off mood bolstered the Greenback, which so far has recovered some ground during the current week.
New
update2025.07.12 05:44

FHFA Director suggests that Fed Chair Powell may be considering resigning

Bill Pulte, the Trump-selected Director of the Federal Housing Finance Agency and former chairman of Fannie May and Freddie Mac, nodded to entirely-uncomfirmed reports that Federal Reserve (Fed) Chair Jerome Powell may be considering resigning from his post as the head of the Fed.
New
update2025.07.12 05:37

Fed's Goolsbee warns that new tariff threats could hamper rate cut hopes

In an interview with the Wall Street Journal, Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee warned that ongoing trade policy at the hands of Trump's constant tariff threats could hamper the ability of the Fed to deliver interest rate cuts that both the broader market and Donald Tru
New
update2025.07.12 05:24

Canadian Dollar tests low side despite upswing in Canadian labor data

The Canadian Dollar (CAD) tested lower ground against the US Dollar (USD) on Friday, shedding weight despite Canadian labor data figures outperforming median market forecasts by a sizeable margin, kicking back economic downturn concerns and forcing rate watchers to trim their bets of another Bank of
New
update2025.07.12 05:18

AUD/USD stalls at key 0.6600 resistance amid mixed market catalysts

The battle between the Australian Dollar (AUD) and the US Dollar (USD) persists on Friday, with bulls in the AUD/USD pair continuing to push for a break through the next major resistance level at 0.6600.
New
update2025.07.12 04:15

Gold price surges past $3,350 as Trump tariff threats jolt markets

Gold price rallies nearly 1% on Friday as the market mood shifts sour on controversial trade policies imposed by US President Donald Trump on Canada and threatening to broaden duties to other countries and Copper.
New
update2025.07.12 03:51

Dow Jones Industrial Average backslides as trade war rhetoric accelerates again

The Dow Jones Industrial Average (DJIA) snapped a two-day recovery on Friday, testing below the 44,400 level once again as equities grapple with a new reality where trade tariffs exist in a quantum state, prone to popping in and out of existence at a moment's notice.
New
update2025.07.12 03:34

EUR/CHF Price Forecast: Bearish momentum grows within consolidation range

The Euro (EUR) remains under pressure against the Swiss Franc (CHF) on Thursday, trading near the lower boundary of its multi-week consolidation range between 0.9300 and 0.9430.
New
update2025.07.12 03:24

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel