US stock futures fell sharply on Thursday as oil prices resumed their climb, stoking fears of renewed inflation. WTI crude rose back above $90 a barrel as the prospect of a prolonged war involving Iran overshadowed a coordinated release of oil reserves by major economies. Markets also judged the emergency release as inadequate, even after the IEA announced its largest-ever drawdown of 400 million barrels of crude. Of that total, 172 million barrels will come from the US, though delivery is expected to take about 120 days.
In regular trading on Wednesday, the Dow and S&P 500 declined 0.61% and 0.08%, respectively, while the Nasdaq Composite edged up 0.08%. Eight of the 11 S&P sectors finished lower, with energy, technology, and communication services the only groups closing in positive territory. Clean energy funds were a notable bright spot, hitting record highs as investors sought alternatives to volatile fossil fuel supplies amid the ongoing regional conflict.
