Rebound By Crude Oil May Weigh On Wall Street

The major U.S. index futures are currently pointing to a modestly lower open on Wednesday, with stocks likely to move to the downside after ending yesterday’s choppy session narrowly mixed.

A rebound by the price of crude oil may weigh on Wall Street, as crude for April delivery is surging by nearly 4 percent after plummeting by almost 12 percent during Tuesday’s session.

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.

In U.S. economic news, a report released by the Labor Department showed 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.

After recovering from an early sell-off to end Monday’s session mostly higher, stocks showed a lack of direction over the course of the trading day on Tuesday. The major averages spent the day bouncing back and forth across the unchanged line.

The major averages eventually ended the day narrowly mixed. While the Nasdaq inched up 1.16 points or less than a tenth of a percent to 22,697.10, the Dow edged down 34.29 points or 0.1 percent to 47,706.51 and the S&P 500 dipped 14.51 points or 0.2 percent to 6,781.48.

The choppy trading on Wall Street came amid substantial volatility by the price of crude oil, with crude for April delivery plummeting almost 12 percent after soaring to nearly $120 a barrel on Monday.

Traders also seemed to be expressing some uncertainty about the U.S. war with Iran after President Donald Trump’s latest remarks about the conflict.

Trump said in a press conference on Monday that the war against Iran could end “very soon” but provided few details about his end game.

The president claimed in a subsequent post on Truth Social that Iran would be hit “twenty times harder” if they do anything that stops the flow of oil within the Strait of Hormuz.

“We will take out easily destroyable targets that will make it virtually impossible for Iran to ever be built back, as a Nation, again — Death, Fire, and Fury will reign upon them — But I hope, and pray, that it does not happen!” Trump said.

Echoing Trump’s confidence, Defense Secretary Pete Hegseth asserted in a press conference this morning that Iran is “badly losing” but said the U.S. will still be launching its “most intense day of strikes” in Iran today.

Reflecting the lackluster close by the broader markets, most of the major sectors ended the day showing only modest moves.

Software stocks showed a significant move to the downside, however, with the Dow Jones U.S. Software Index falling by 1.7 percent.

Oil producer, natural gas and housing stocks also saw notable weakness on the day, while gold stocks showed a strong move to the upside along with the price of the precious metal.

Commodity, Currency Markets

Crude oil futures are surging $3.59 to $87.04 a barrel after plummeting $11.32 to $83.45 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $5,183.20, down $58.90 compared to the previous session’s close of $5,242.10. On Tuesday, gold surged $138.40.

On the currency front, the U.S. dollar is trading at 158.54 yen compared to the 158.04 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.1587 compared to yesterday’s $1.1610.

Asia

Asian stocks rose on Wednesday to extend gains from the previous session as oil prices stabilized on easing supply concerns following reports that the International Energy Agency (IEA) may deploy its largest-ever stockpile draw to offset supply risks from the war in the Middle East.

Investors also digested better-than-expected fiscal third quarter results from enterprise and cloud-computing giant Oracle and looked ahead to the release of key U.S. inflation data for fresh insights into the Federal Reserve’s interest rate path.

Both Brent and WTI crude oil contracts moved higher in Asian trading after having plunged more than 11 percent on Tuesday as U.S. President Donald Trump said the war on Iran was “going to be ended soon.”

U.S. yields were slightly lower and gold held steady below $5,200 an ounce as Tehran kept up pressure, firing missiles and drones at Gulf nations while facing heavy strikes from the United States and Israel.

China’s Shanghai Composite Index rose 0.3 percent to 4,133.43 in volatile trading. Hong Kong’s Hang Seng Index slipped 0.2 percent to 25,898.76, giving up early gains.

Japanese markets rallied as the yen remained weak on BoJ policy uncertainty and data showed wholesale inflation cooled for a third month in February.

The Nikkei 225 Index jumped 1.4 percent to 55,025.37, while the broader Topix Index settled 0.9 percent higher at 3,698.85.

Semiconductor-related stocks led the surge after Oracle posted strong quarterly earnings and lifted its 2027 revenue outlook.

SoftBank Group shares jumped over 7 percent and Kioxia surged 9.3 percent. Nintendo added 8.9 percent after releasing a new game.

Seoul stocks rose for a second straight session as investors hunted for bargains after recent volatility. The benchmark Kospi surged 1.4 percent to 5,609.95, with tech giants Samsung Electronics and SK Hynix rising 1.1 percent and 1.8 percent, respectively.

Brokerage houses ended on a bullish note, with Mirae Security Assets surging 10.5 percent and Kiwoom Securities adding 5.5 percent.

Australian markets advanced, led by strong gains in the mining and materials sector. The benchmark S&P/ASX 200 Index climbed 0.6 percent to 8,743.50, while the broader All Ordinaries Index closed up 0.6 percent at 8,976.80.

Ora Banda Mining shares soared 21.5 percent, Lynas Rare Earths skyrocketed 16.2 percent and Iluka Resources gained 9.4 percent.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index shot up 1.5 percent to 13,293.13, snapping a three-session losing streak.

Europe

European shares have moved mostly lower on Wednesday as oil prices regained ground after falling more than 11 percent in the previous session.

Benchmark Brent crude futures were up 2.6 percent in European trading and WTI contracts surged more than 4 percent as the fighting in Iran continued to rage on, with the U.S. and Israel exchanging air strikes with Iran across the Middle East.

On a light day on the economic front, data showed German inflation eased as estimated in February, as the increase in food prices slowed noticeably.

According to final data from Destatis, the consumer price index posted annual growth of 1.9 percent in February, in line with the flash estimate.

EU harmonized inflation softened slightly to 2.0 percent in February from 2.1 percent in January.

While the German DAX Index is down by 1.3 percent, the U.K.’s FTSE 100 Index and the French CAC 40 Index are both down by 0.7 percent.

German consumer goods and adhesives maker Henkel has moved sharply lower after reporting mixed fourth-quarter results.

Arms maker Rheinmetall has also shown a significant move to the downside after its 2026 sales outlook fell short of estimates.

Promotional products marketer 4imprint has also plummeted after reporting disappointing 2025 results.

Life insurer Legal & General Group has also plunged despite 2025 results coming broadly in line with estimates and the company launching its largest-ever share buyback of £1.2 billion.

Meanwhile, state-owned utility Uniper has rallied after reporting strong financial results for the fourth quarter of 2025.

Shares of British construction group Balfour Beatty have also soared. The company launched a £200 million share buyback and raised its full-year dividend after reporting higher profits and a record order book.

U.S. Economic News

A report released by the Labor Department on Wednesday showed 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.

At 10:30 am ET, the Energy Information Administration is due to release its report on crude oil inventories in the week ended March 6th. Crude oil inventories are expected to rise by 1.1 million barrels.

The Treasury Department is scheduled to announce the results of this month’s auction of $39 billion worth of ten-year notes at 1 pm ET.