US stock index futures rebounded during Asian trading on the morning of July 8 despite Middle East tensions. E-mini S&P500 futures rose 0.13% to 7,561.25 as of 10:18 AM Korean time, while E-mini Nasdaq100 futures gained 0.50% to 29,537.00. The recovery followed a US session where the S&P500 fell 0.45% and Nasdaq dropped 1.16% on profit-taking in AI stocks and surging oil prices. US forces conducted airstrikes against Iran after attacks on three merchant ships in the Strait of Hormuz, with the Treasury revoking licenses for Iranian oil exports.
US Stock Futures Recover in Asian Trading
E-mini S&P500 index futures traded at 7,561.25, up 0.13% from the previous session as of 10:18 AM Korean time on July 8, according to Yonhap Infomax index futures integrated screen. Technology-focused E-mini Nasdaq100 index futures traded at 29,537.00, up 0.50% from the previous session. The Dow Jones Industrial Average reached an intraday record high during the previous US session but ultimately closed down more than 100 points.
US Conducts Iran Airstrikes as Oil Prices Surge
The US carried out "a series of powerful airstrikes" against Iran in response to attacks on three merchant ships passing through the Strait of Hormuz, according to US Central Command. The US Treasury revoked licenses that had permitted Iran's oil exports, strengthening sanctions against Iran. International oil prices surged on escalating Middle East tensions. West Texas Intermediate (WTI) crude futures rose more than 2%, exceeding $72 per barrel, while Brent crude surpassed $75.
Treasury Yields Rise Across Maturities
US Treasury yields showed an upward trend. The 10-year Treasury yield traded at 4.5600%, up 0.8 basis points, according to Yonhap Infomax overseas interest rates screen. The 30-year yield traded at 5.0640%, up 0.7 basis points, while the policy-sensitive 2-year yield traded at 4.1910%, up 0.4 basis points. The Dollar Index rose 0.07% to 101.144.
Market Awaits June FOMC Minutes Release
Market participants' attention is focused on the June FOMC minutes scheduled for release on July 8 US Eastern time. The minutes will contain the first monetary policy meeting content since Federal Reserve Chair Kevin Warsh took office and are expected to provide clues about the future interest rate path. Adam Crisafulli, founder of Vital Knowledge, stated, "Chair Warsh commented very limitedly on policy direction at the press conference," adding, "The minutes could be more hawkish than expected and may provide some surprise to the market."
FAQ
What happened to US stock futures on the morning of July 8?
US stock index futures rebounded during Asian trading on the morning of July 8. E-mini S&P500 futures rose 0.13% to 7,561.25 as of 10:18 AM Korean time, while E-mini Nasdaq100 futures climbed 0.50% to 29,537.00, recovering from the previous US session's declines.
Why did oil prices surge on July 8?
Oil prices surged after the US conducted airstrikes against Iran in response to attacks on three merchant ships passing through the Strait of Hormuz. The US Treasury also revoked licenses that had permitted Iranian oil exports. WTI crude rose more than 2% above $72 per barrel, while Brent crude exceeded $75.
What is the market focus for July 8?
Market participants are focused on the June FOMC minutes scheduled for release on July 8 US Eastern time. The minutes represent the first monetary policy meeting under Federal Reserve Chair Kevin Warsh and are expected to provide clues about future interest rate policy direction.
