U.S. stock futures are lower ahead of the Wall Street open after the U.S. launched “self-defense strikes” against Iran, in retaliation for the downing of a helicopter a day earlier.

The moves come after a roller coaster session that finished mixed: the S&P 500 was down over 2% and the tech-heavy Nasdaq-100 fell over 4% at session lows before rebounding.

Iran has not directly claimed responsibility for shooting down the U.S. helicopter. However, the latest developments threaten the fragile ceasefire between the U.S. and Iran and could hinder progress toward a peace deal.

While the slide in tech stocks weighed on markets, investor focus will continue to be on headline risk out of the Middle East along with inflation data. The May Consumer Price Index (CPI) is due this morning with expectations of inflation running at a 4.2% year-over-year rate and up 0.5% on a month over month basis.

Snapshot (as of 8 AM ET)

• Oil (/CL) – The U.S. benchmark oil price is up 2% to nearly $99 per barrel
• Gold (/GC) – Gold is down nearly 3% to 4,163
• Bitcoin (/BTC) – The cryptocurrency futures are down about 1.4% to 61,320
• VIX – The CBOE Volatility Index has jumped more than 9% to 21.70
• U.S. Dollar (/DX) – The dollar index is up 0.07% to 99.982

Biggest Premarket Movers (as of 8 AM ET)

Advancers:

• APA Corp (APA) 1.42%
• Devon Energy Corp (DVN) 1.32%
• Entergy Corp (ETR) 0.93%
• Chevron Corp (CVX) 0.80%
• RTX Corp (RTX) 0.79%

Decliners:

• Super Micro Computer Inc (SMCI) -11.42%
• Micron Technology Inc (MU) -4.59%
• Old Dominion Freight Line Inc (ODFL) -4.33%
• Newmont Corp (NEM) -3.60%
• Western Digital Corp (WDC) -3.59%

Economic Data (ET)

• 7:00 AM: MBA Mortgage Applications
• 8:30 AM: CPI
• 10:30 AM: Oil Inventories
• 1:00 PM: 10-Year Note Auction
• 2:00 PM: Treasury Statement

Notable Earnings

• Premarket: Chewy (CHWY) Core & Main (CNM)
• Postmarket: Oracle (ORCL) Oxford Industries (OXM) Stitch Fix (SFIX)
• Premarket Tomorrow: Aurora Cannabis (ACB) Lovesac (LOVE) Vera Bradley (VRA)
• Postmarket Tomorrow: Adobe (ADBE) Lennar (LEN) RH (RH)

Upgrades/Downgrades

• UBS upgrades Cava Group (CAVA) to Buy from Neutral
• RBC Capital upgrades Pfizer (PFE) from Underperform to Sector Perform
• JPMorgan upgrades Illumina (ILMN) from Neutral to Overweight
• RBC Capital downgrades Nike (NKE) from Outperform to Sector Perform
• Truist downgrades Bill Holdings (BILL) from Buy to Hold

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