Dow futures plunge 215 points: 5 things to know before Wall Street opens

• Brent crude rose 1.6% to $97.56 after Iranian missile attacks damaged Kuwait's airport and US strikes occurred near the Strait of Hormuz, a critical global oil route
• AI hardware demand continues supporting tech stocks, with Broadcom up 3% ahead of earnings and gaining 14% over four sessions on strong AI revenue expectations
• SpaceX plans to price its highly anticipated IPO at $135 per share, testing investor appetite for major tech listings alongside upcoming offerings from Anthropic and OpenAI

Market Summary: US Futures Pull Back from Record Highs Amid Oil Surge

Key Market Movements:

US stock futures retreated Wednesday morning after closing at record highs the prior session. Dow futures fell 215 points (-0.41%), while S&P 500 and Nasdaq 100 futures remained relatively flat. The S&P 500 had closed above 7,600 for the first time on Tuesday.

Oil Price Surge:

Brent crude jumped 1.6% to $97.56 per barrel following escalating Middle East tensions. An Iranian missile attack damaged Kuwait's airport, and US military strikes occurred near the Strait of Hormuz—a critical chokepoint for global oil supply. Rising energy prices threaten to revive inflation concerns, complicating the Federal Reserve's policy outlook.

AI Sector Strength:

Artificial intelligence continues driving market sentiment. Broadcom (AVGO) rose 3% ahead of quarterly earnings, gaining 14% over four sessions on strong expectations for AI hardware demand. Chip and networking suppliers remain supported by sustained AI infrastructure spending.

Major IPO Activity:

SpaceX plans to price its highly anticipated IPO at $135 per share, marking a significant test for large-cap technology listings after an extended drought. Other AI companies including Anthropic and OpenAI are also preparing for public markets.

Economic Data Ahead:

Investors await key economic releases including S&P Global's manufacturing and services surveys, the ISM services index, and Friday's crucial labor market report. Strong data could influence Federal Reserve policy expectations, particularly regarding the timing of potential rate cuts.

Market Implications:

The pullback reflects caution as traders balance record valuations against rising oil prices and inflation risks. Elevated energy costs could pressure the Fed to maintain higher rates longer, potentially challenging the market's rally if economic strength persists.