US Equities Mixed Pre-Market; Geopolitical Tensions & Fed Commentary in Focus; Crude Oil Plunges

Lead US equity futures are mixed this morning, with Dow futures up 1.17% and S&P futures up 0.57%, while Nasdaq futures show a modest 0.17% gain. Geopolitical concerns persist following Iran's downing of a US drone and recent defense deals. Crude oil is significantly lower, with WTI crude down 6.73%. Session narrative US equity futures are displaying a mixed performance in pre-market trading. Dow futures are leading with a 1.17% increase, followed by S&P futures which are up 0.57%. Nasdaq futures are showing a smaller gain of 0.17%. The US 10-year yield is down 1.56%. In commodities, WTI crude has plunged 6.73%, and Brent crude is down 5.63%. Gold is slightly lower by 0.10%. The US Dollar Index is down 0.10%. Geopolitical tensions remain a key theme, with news of Iran shooting down a US drone over the Strait of Hormuz. This comes alongside significant defense contracts, as Northrop Grumman and Lockheed Martin signed framework deals with the Pentagon to expand missile-interceptor component production, totaling over $3 billion. Fed officials continue to comment on monetary policy, with Fed's Williams backing the current policy stance, stating that current policy is well-positioned to return inflation to 2% and strongly supported the latest FOMC decision. Mergers and acquisitions activity is also noted, with Curium merging with Lantheus for $114.50/share, Indivior acquiring Supernus, and KKR buying Integer for $127/share. Cross-asset check Equity futures are mixed, with Dow and S&P futures higher, while Nasdaq futures show a smaller gain. The US 10-year yield is down 1.56%. The US Dollar Index is down 0.10%. Crude oil prices are significantly lower, with WTI crude down 6.73% and Brent crude down 5.63%. Gold is down 0.10%. Copper is up 0.22% and natural gas is up 1.89%. The VIX is up 0.19%. Themes & continuing stories Geopolitical tensions are a dominant theme, with the downing of a US drone by Iran and ongoing defense contracts highlighting global instability. The market is also digesting comments from Federal Reserve officials regarding the path of monetary policy and inflation. The significant drop in crude oil prices is another key story, potentially impacting inflation expectations and energy sector performance. What’s ahead No major economic data releases or earnings reports are scheduled for the immediate pre-market session. Traders will continue to monitor geopolitical developments, particularly in the Middle East, and any further commentary from central bank officials. The direction of crude oil prices will also be a significant factor to watch as the US market opens.