Dow futures plunge 310 points: 5 things to know before market opens

Wall Street was poised for a weaker open on Thursday as investors paused after a recent rally, with renewed uncertainty over the US-Iran conflict and its impact on oil prices clouding the outlook for growth and inflation.

Traders were also reassessing corporate earnings as the latest quarter begins to reflect fresh disruption from Middle East tensions, rather than the earlier macro drivers that had shaped previous results.

With sentiment turning more selective, stock-specific moves in Tesla, IBM and Texas Instruments helped define the tone before the opening bell.

5 things to know before Wall Street opens

1. Futures point to a softer start

US equity futures signalled a lower open, suggesting the recent rally may be losing momentum as investors lock in gains and turn more cautious on geopolitics.

Futures linked to the S&P 500 slipped around 0.5%, while Nasdaq 100 futures declined roughly 0.6%.

Dow Jones Industrial Average futures were down close to 310 points, or about 0.6%, in early premarket trading, reflecting broad-based pressure across major indices.

The move pointed to a bout of risk aversion rather than a decisive shift in positioning.

2. Iran tensions return to the forefront

Iran said it had seized two foreign commercial vessels in the Strait of Hormuz and demanded that the US lift its naval blockade, adding to investor unease over shipping disruption and energy supply risks.

Although President Donald Trump had earlier extended a ceasefire with Iran, the wider standoff remains unresolved and vulnerable to further escalation.

Analysts said that even if tensions ease and shipping flows normalise, the global economy could still take time to recover from what could become one of the largest oil supply shocks in decades.

3. Oil prices remain central to inflation outlook

Markets continue to watch crude closely, as elevated oil prices risk feeding inflation and complicating the path for policy easing from the Federal Reserve.

The strain has been visible across commodity-linked sectors, with volatility in energy and chemicals stocks reflecting uncertainty around both supply disruptions and demand expectations.

Investors remain highly sensitive to oil price swings and geopolitical developments, while looking to earnings for clearer direction.

4. Tesla and IBM weigh on technology sentiment

Tesla fell about 2.9% after saying it would raise annual capital spending to more than $25 billion as it accelerates investment in artificial intelligence, robotics and semiconductors.

IBM slid roughly 7% after its results disappointed investors, with slowing growth in key segments raising concerns about returns on heavy AI-related investment.

Kyle Rodda of Capital.com said one overlooked theme this year has been the scale of investment in artificial intelligence and the risk of diminishing marginal returns.

5. Earnings and data will shape the next move

Texas Instruments rose about 10% after forecasting second-quarter revenue and profit above Wall Street expectations, offering a brighter note in an otherwise cautious tape.

Honeywell traded little changed ahead of results, while American Airlines, American Express and Comcast were among the companies due to report later on Thursday.

Investors were also awaiting weekly US initial jobless claims and fresh manufacturing data for a clearer read on the strength of the economy.