US stock futures fell on Wednesday after the United States carried out “self-defense strikes” against Iran in response to the downing of an American helicopter, heightening geopolitical tensions in the region. Investors also turned their focus to upcoming US inflation data for new clues on the Federal Reserve’s policy trajectory, following last week’s stronger-than-expected jobs report that bolstered expectations of an interest rate hike before year-end.
In Tuesday’s regular session, the S&P 500 and the Nasdaq Composite declined 0.26% and 0.97%, respectively, while the Dow Jones Industrial Average edged up 0.17%. Semiconductor shares remained under pressure: the iShares Semiconductor ETF fell more than 3%, retracing part of Monday’s 6% surge. The fund had already slumped 10% on Friday—its sharpest single-day drop in six years—as investors grew increasingly wary that the AI-fueled rally in chip stocks had become overstretched.
