Dow futures plunge 110 points: 5 things to know before market opens

• Dow futures dropped 110 points (0.20%) while Brent crude hit $118.80, its highest since late 2022, after Trump rejected Iran's proposal to reopen the Strait of Hormuz
• The Fed voted 8-4 to hold rates at 3.5%-3.75%, the most divided decision since October 1992, with dissenters split between wanting immediate cuts and opposing easing language
• Meta stock fell after raising 2026 capex guidance to $125-145 billion from $115-135 billion, while Alphabet rose 6% on record cloud revenue; first-quarter GDP and March PCE data due Thursday

Market Summary: Dow Futures Drop Amid Oil Surge and Fed Division

Market Overview:

U.S. stock futures opened mixed Thursday, with Dow futures down 110 points (-0.20%), S&P 500 futures falling 0.22%, and Nasdaq 100 futures declining 0.23%. Markets are balancing strong Big Tech earnings against renewed inflation concerns driven by surging oil prices.

Key Developments:

Oil Crisis: Brent crude surged nearly 7% to $118.80 per barrel, reaching its highest level since late 2022. President Trump rejected Iran's proposal to reopen the Strait of Hormuz, maintaining the U.S. naval blockade until a nuclear agreement is reached, creating significant supply-risk concerns.

Federal Reserve: The Fed held rates steady at 3.5%-3.75% in its most divided vote since October 1992, with a historic 8-4 split. Three dissenting members opposed easing language, while one voted for an immediate cut. Fed Chair Powell cited "unusually difficult" conditions including pandemic effects, Ukraine, tariffs, and the Iran crisis.

Tech Earnings: Alphabet jumped 6% after-hours on record cloud revenue. Amazon gained on strong AWS performance. However, Meta Platforms fell after raising 2026 capex guidance to $125-145 billion (from $115-135 billion) due to higher component costs and Iran war-related data center expenses. Microsoft edged lower on AI spending scrutiny.

Economic Data: Thursday brings critical releases including Q1 GDP (expected at 2.3% vs. Q4's 0.5%) and March PCE inflation data. Analysts forecast headline PCE up 0.6% and core PCE up 0.3%, driven by energy costs. Upside surprises could delay rate cuts until late 2026.

Market Implications: The combination of elevated oil prices and divided Fed signals suggests prolonged inflation pressure and extended higher rates, creating headwinds for equities despite solid corporate earnings.