US markets today: Dow, S&P 500, Nasdaq futures crash as oil prices top $79/bbl after Trump's ceasefire remarks

CME Group data suggests that the Dow Jones futures dropped 0.82% or 436 points to 52,764 points ahead of the opening bell on Wednesday, compared to the previous market close.

The exchange data also showed that S&P 500 futures were trading 0.55% or 41.25 points lower at 7,510.50 points ahead of the opening bell, while the Nasdaq 100 futures were trading 0.75% or 221 points lower at 29,168 points on Wednesday, July 8.

Key focus of market investors will be towards monitoring the escalations between the United States and Iran, as Trump’s latest signal highlights that there can be further attacks despite the existing ceasefire agreement.

Key things to know before Wall Street open

US market snapshot

After Tuesday’s trading session, the Dow Jones Industrial Average closed 0.25% lower at 52,925.15 points, compared to 53,055.91 points at the previous US stock market close, according to MarketWatch data.

The S&P 500 index ended 0.45% lower at 7,503.85 points after the trading session on July 8, compared to 7,537.43 points at the previous market close. Meanwhile, the Nasdaq Composite closed 1.16% lower at 25,818.69 points, compared to 26,121.16 points at the previous market close.

Oil prices rally 7%

Crude oil prices in the global market rallied nearly 7% to its intraday high level above $79 per barrel (bbl) during the trading session on Wednesday, July 8, after the recent attacks in West Asia and President Donald Trump’s comments on the ceasefire between America and Iran.

At 5:37 pm (IST), global benchmark Brent crude oil prices were trading 5.4% higher at $78.18 per bbl on Wednesday’s market, compared to $74.16 per bbl at the previous market close.

The data also showed that the crude oil prices have gained 9% in the last five trading session basis, but the energy rates lost 17% in the last one month, according to Investing.com data.

Is US-Iran ceasefire over?

At the NATO summit in Istanbul, US President Donald Trump said that the ceasefire between the United States and Iran was “over” as far as he is concerned after the West Asian country launched missiles and drones in retaliation to the recent US airstrikes.

Iran’s move was in response to the US targeted strikes on Tuesday, where the Western country attacked 80 locations in Iran, destroying air defence systems, command and control networks, coastal radar sites, anti-ship missile capabilities, and more than 60 Islamic Revolutionary Guard Corps small boats.

After the airstrikes, Iran warned that the country will deliver a “crushing response” to US strikes.

US Fed FOMC minutes

The US Federal Reserve’s Federal Open Market Committee (FOMC) is set to release the minutes of the meeting from its June policy decision at 2 pm (ET) on Wednesday, July 8.

Investors will be looking out for the FOMC minutes of the meeting as the document will provide additional information about US Fed’s first key monetary policy meeting under the new Chairman Kevin Warsh.

The US Fed kept the interest rates unchanged as the central bank focuses on upcoming data to analyse the interest rate trajectory for the US economy in the current financial year.