Extended Rebound By Crude Oil May Weigh On Wall Street

The major U.S. index futures are currently pointing to a lower open on Thursday, with stocks likely to come under pressure after closing little changed for two straight days.

Another sharp increase by the price of crude oil is likely to weigh on Wall Street, as oil prices further offset the nosedive seen on Tuesday.

U.S. crude oil for April delivery is spiking $6.12 or 7 percent to $93.37 a barrel but remains well off Monday’s highs near $120 a barrel.

International benchmark Brent crude futures for May delivery is also surging by 7 percent after briefly hitting $100 a barrel earlier in the session.

The extended rebound by the price of crude oil comes amid reports three more foreign ships were struck in the Persian Gulf overnight, adding to concerns about transit through the strategically vital Strait of Hormuz.

Energy Secretary Chris Wright told CNBC in an interview this morning that the U.S. Navy is “not ready” to escort oil tankers through the strait.

Stocks showed a lack of direction over the course of the trading day on Wednesday, extending the lackluster performance seen in the previous session. The major averages once again spent the day bouncing back and forth across the unchanged line.

The major averages eventually closed mixed for the second straight day. While the Nasdaq inched up 19.03 points or 0.1 percent to 22,716.13, the S&P 500 edged down 5.68 points or 0.1 percent to 6,775.80 and the Dow slid 289.24 points or 0.6 percent to 47,417.27.

The choppy trading on Wall Street came as traders seemed to be taking a breather following the significant volatility seen over the past several sessions.

The recent volatility has largely been driven by big swings by the price of crude oil, which is rebounding today after plummeting on Tuesday.

Crude oil is regaining ground after the United Kingdom Maritime Trade Operations said it has received reports of three vessels being struck by projectiles off Iran’s coast, adding to worries about transit through the Strait of Hormuz.

Reports that Iran is seeking to mine the Strait of Hormuz has also added to concerns about shipping through the vital waterway.

Meanwhile, traders have largely shrugged off a report from the Labor Department showing consumer prices in the U.S. increased in line with economist estimates in the month of February.

The Labor Department said its consumer price index climbed by 0.3 percent in February after rising by 0.2 percent in January. The growth matched expectations.

Excluding food and energy prices, core consumer prices rose by 0.2 percent in February after increasing by 0.3 percent in January, which was also in line with estimates.

The report also said the annual rates of growth by both consumer prices and core consumer prices were unchanged from the previous month at 2.4 percent and 2.5 percent, respectively.

Most of the major sectors showed only modest moves on the day, contributing to the lackluster performance by the broader markets.

Oil producer stocks have moved sharply higher along with the price of crude oil, however, with the NYSE Arca Oil Index surging by 3.5 percent.

Computer hardware stocks also saw considerable strength, resulting in a 1.5 percent gain by the NYSE Arca Computer Hardware Index.

On the other hand, gold stocks tumbled along with the price of the precious metal, dragging the NYSE Arca Gold Bugs Index down by 2.3 percent.

Housing stocks also showed a significant move to the downside amid a jump by treasury yields, with the Philadelphia Housing Sector Index falling by 1.6 percent.

Commodity, Currency Markets

Crude oil futures are spiking $5.90 to $93.15 a barrel after surging $3.80 to $87.25 a barrel on Wednesday. Meanwhile, after slumping $63 to $5,179.10 an ounce in the previous session, gold futures are inching up $1.50 to $5,180.60 an ounce.

On the currency front, the U.S. dollar is trading at 158.88 yen versus the 158.94 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.1532 compared to yesterday’s $1.1566.

Asia

Asian stocks tumbled on Thursday as the price of a barrel of Brent crude oil, the international standard, briefly topped $100 on supply concerns following Iranian attacks on commercial shipping around the Strait of Hormuz.

As the U.S. campaign of airstrikes in Iran entered its 13th day, there were no signs the conflict was subsiding.

Iran has targeted oil fields and refineries in Gulf Arab nations and effectively stopped cargo traffic through the narrow Strait of Hormuz in a bid to exert pressure on the United States and Isreal to end the war.

Oil prices last traded up more than 4 percent in Asian trading, the dollar rose and Treasury yields increased amid tanker attacks, strikes across Lebanon, and growing fears of prolonged economic disruption. Gold prices were little changed at $5,178 an ounce.

China’s Shanghai Composite Index slipped 0.1 percent to 4,129.10 after a volatile session. Hong Kong’s Hang Seng Index slid 0.7 percent to 25,716.76 due to the ongoing hostilities in the Middle East.

Japanese stocks ended lower as oil and gas price volatility fueled inflation expectations. The International Energy Agency’s decision to conduct its largest stockpile release failed to ease market jitters over supply disruptions caused by the shutdown of the Strait of Hormuz.

The Nikkei 225 Index ended down 1.0 percent at 54,452.96, with rate-sensitive real estate stocks and financials leading losses. The broader Topix Index closed 1.3 percent lower at 3,649.85.

Seoul stocks ended moderately lower, with the Kospi falling 0.5 percent to 5,583.25 as tensions continued to persist around the critical waterway south of Iran.

Australian markets fell sharply after a survey showed consumer inflation expectations rose to the highest level since July 2023 in March following the RBA’s 25 basis point rate hike in February.

As Iran uncertainty mounts, Reserve Bank of Australia deputy governor Andrew Hauser said earlier this week that the jump in the oil price will push inflation above the 4.2 percent the central bank has forecast.

The benchmark S&P/ASX 200 Index slumped 1.3 percent to 8,629 as investors braced for the Reserve Bank of Australia’s policy meeting on March 17. The broader All Ordinaries Index settled 1.4 percent lower at 8,851.40.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index dropped 0.7 percent to 13,199.29, reversing the prior session’s rally.

Europe

European stocks declined on Thursday as a surge in oil prices fueled inflation worries. The price of a barrel of Brent crude oil, the international standard, briefly topped $100 a barrel on supply concerns following Iranian attacks on commercial shipping around the Strait of Hormuz.

As the U.S. campaign of airstrikes in Iran entered its 13th day, there were no signs the conflict was subsiding.

While the French CAC 40 Index is down by 0.5 percent, the U.K.’s FTSE 100 Index is down by 0.4 percent and the German DAX Index is down by 0.3 percent.

In corporate news, Swiss Life Holding, Europe’s leading life insurer, has slumped after its fee business slipped further from a key three-year target and asset management tumbled fell in 2025.

German automaker BMW has also moved to the downside after reporting a 3 percent decline in full-year net profit.

Meanwhile, reinsurer Hannover Re has rallied after reporting a rise in full-year net income and confirming 2026 guidance.

Daimler Truck Holding has also jumped after it guided for a broadly stable 2026 ?profit margin in its industrial business.

Online retailer Zalando has also moved sharply higher after reporting better-than-expected 2025 fiscal results.

Financial services group Legal & General has also advanced as it announced the commencement of the first tranche of its £1.2 billion share buyback program.

U.S. Economic News

First-time claims for U.S. unemployment benefits unexpectedly edged slightly lower in the week ended March 7th, according to a report released by the Labor Department on Thursday.

The Labor Department said initial jobless claims slipped to 213,000, a decrease of 1,000
from the previous week’s revised level of 214,000.

Economists had expected jobless claims to inch up to 215,000 from the 213,000 originally reported for the previous week.

The report said the less volatile four-week moving average also dipped to 212,000, a decrease of 4,000 from the previous week’s revised average of 216,000.

The Commerce Department also released a report on Thursday showing the U.S. trade deficit narrowed by much more than expected in the month of January.

The report said the trade deficit shrank to $54.5 billion in January from a revised $72.9 billion in December.

Economists had expected the trade deficit to decrease to $67.9 billion from the $70.3 billion originally reported for the previous month.

The narrower than expected trade deficit came as the value of exports surged by 5.5 percent to $302.1 billion, while the value of imports slid by 0.7 percent to $356.6 billion.

New residential construction in the U.S. unexpectedly surged in the month of January, the Commerce Department revealed in a separate report released on Thursday.

The Commerce Department said housing starts spiked by 7.2 percent to an annual rate of 1.487 million in January after jumping by 4.8 percent to a revised rate of 1.387 million in December.

Economists had expected housing starts to slump by 3.9 percent to an annual rate of 1.350 million from the 1.404 million originally reported for the previous month.

Meanwhile, the report also said building permits plunged by 5.4 percent to an annual rate of 1.376 million in January after surging by 4.8 percent to a revised rate of 1.455 million in December.

Building permits, an indicator of future housing demand, were expected to tumble by 5.2 percent to an annual rate of 1.410 million from the 1.448 million originally reported for the previous month.

At 11 am ET, the Treasury Department is scheduled to announce the details of this month’s auction twenty-year bond auction.

The Treasury Department is also due to announce the results of this month’s auction of $22 billion worth of thirty-year bonds at 1 pm ET.