Nasdaq and Dow Jones called lower as US and Iran exchange fire over Hormuz

• Nasdaq futures fell 0.5% while S&P 500 and Dow Jones futures both dropped around 0.2% after US strikes on Iran and Tehran's attack on a US airbase in Kuwait
• Oil prices surged 3% with WTI above $91 and Brent exceeding $97 per barrel as the Strait of Hormuz closure concerns intensified
• Key economic data includes core PCE inflation expected at 3.3% year-over-year (up from 3.2% in March), which could influence rate hike expectations under new Fed Chair Kevin Warsh

Market Summary: US-Iran Tensions Drive Market Decline

Market Overview:

US equity futures turned negative on Thursday, May 28, 2026, as escalating US-Iran tensions threatened the Gulf ceasefire. Nasdaq futures led declines at -0.5%, while S&P 500 and Dow Jones futures both fell approximately 0.2%.

Previous Session Performance:

Wednesday's trading saw modest gains: the Dow Jones rose 183 points (+0.4%) to close at 50,644, the Nasdaq Composite gained 19 points (+0.1%) to 26,675, and the S&P 500 finished marginally higher at 7,520.

Geopolitical Developments:

US strikes against Iran and Tehran's retaliatory attack on a US airbase in Kuwait have jeopardized the ceasefire and diminished hopes for an imminent peace deal to reopen the Strait of Hormuz. Market analyst Kathleen Brooks noted the narrative shift has occurred within the past 12 hours.

Commodity and Bond Markets:

Oil prices surged 3% on supply concerns, with WTI crude topping $91 per barrel and Brent crude exceeding $97. US Treasury yields initially spiked before easing, with the 10-year note climbing above 4.5%.

Key Earnings Reports:

Thursday's earnings calendar includes Costco, Dell, Autodesk, Dollar Tree, Best Buy, and Li Auto.

Critical Economic Data:

The core PCE inflation reading is expected at 3.3% year-over-year, up from 3.2% in March. David Morrison of Trade Nation highlighted this release as particularly significant, noting that new Fed Chair Kevin Warsh reportedly focuses on a "trimmed mean" version of CPI. The data could influence market expectations regarding potential rate hikes before year-end.