New York, May 28, 2026, 06:02 EDT
- Nasdaq 100 futures pulled U.S. stock futures lower ahead of the open, with oil climbing and Middle East tensions weighing on risk appetite.
- April PCE inflation data comes out later Thursday. Investors are waiting for the release of the Federal Reserve’s preferred price gauge.
- Marvell and HP shares dropped after earnings. Drone-linked names gained on funding speculation.
U.S. stock index futures slipped early Thursday, with Wall Street pulling back from record highs. Tensions between the U.S. and Iran flared up again and oil prices moved higher.
Softer futures trade follows less than a day after the S&P 500, Dow and Nasdaq closed at record highs. Futures, which let investors bet on index moves before the cash market opens, pointed lower ahead of the 9:30 a.m. New York open.
Dow Jones futures lost 53 points, or 0.10%, to 50,675 early, with the move coming as of 5:47 a.m. EDT. S&P 500 futures slipped 10.75 points, off 0.14% at 7,529.25. Nasdaq 100 futures dropped 93.75 points, or 0.31%, at 29,953.50.
Dow e-minis dropped 0.1%, S&P 500 e-minis slipped 0.09%, and Nasdaq 100 e-minis lost 0.21% as of 4:54 a.m. ET, according to Reuters. The moves came after strikes between Tehran and Washington. Oil added more than 2%. Treasury yields also moved up, Reuters reported.
Asian shares dropped, Brent crude spiked 3.7% to $97.79, and the dollar gained, Reuters reported. The U.S. 10-year Treasury yield hit 4.53%. Investors are bracing for higher inflation after the conflict and supply risks near the Strait of Hormuz.
Inflation is up next. The Bureau of Economic Analysis says the latest Personal Consumption Expenditures price index is set for release May 28. PCE tracks prices U.S. consumers pay and is the inflation measure the Fed watches most.
“A higher-than-expected print will further boost hawkish Federal Reserve expectations and fuel the probability of a rate hike by year-end,” Ipek Ozkardeskaya, senior market analyst at Swissquote Bank, told Reuters. Hawkish in this context means the Fed moves toward tighter policy with higher rates. Reuters
She said an in-line or weaker print “could ease rate hike bets,” but the risk of tighter policy remains as long as geopolitical uncertainty and high energy costs stick around. Money markets now see the Fed keeping rates steady for the rest of the year, but still price in some odds of a 25-basis-point increase in December, according to Reuters. A basis point is one-hundredth of a percentage point. Reuters
Earnings and artificial intelligence remain a strong support under stocks. “We have strong AI secular tailwinds that were confirmed through the earnings we saw,” Anthony Saglimbene, chief market strategist at Ameriprise, told Reuters. But he pointed out the setup is less clear now with “higher energy prices, rates moving higher” and stickier inflation. Reuters
The S&P 500 is seen ending the year at 7,620, a Reuters poll of 47 market pros showed, just above the current all-time highs. The group puts the index at 8,050 by mid-2027. LSEG data that Reuters cited pointed to almost 25% expected earnings growth for the S&P 500 in 2026, with much of the gain from AI-focused stocks and chipmakers.
Premarket, Marvell Technology slid 2.2% after posting Q1 numbers. HP was down 1.4% following its Q2 results and a heads-up on higher memory costs squeezing margins. That’s also on investors’ radar before Dell’s report due later.
Defense and drone stocks were higher. Unusual Machines popped 33%. AeroVironment gained 9.1% and Kratos Defense & Security Solutions was up 11.2% after the Wall Street Journal said the Trump administration is in talks to fund drone companies, Reuters reported.
Traders are watching for the next PCE print and what happens with oil. A stronger PCE report and higher oil prices could turn this dip from profit-taking into what looks like a rates shock. But if inflation comes in soft, or there’s any sign of U.S.-Iran tensions fading, yields might fall and AI-led buying could pick up again, at least for now.
