US stocks today: Dow, S&P 500, Nasdaq futures fall as Fed fears rate hike | Today’s news
U.S. stock futures traded slightly lower on Wednesday, July 1, as investors awaited a fresh batch of economic data and speeches from top central bankers, including Federal Reserve Chairman Kevin Warsh, before placing new bets.
Futures tied to the Dow Jones Industrial Average fell 105 points, or 0.2%, while S&P 500 futures fell 0.2% and Nasdaq 100 futures fell 0.4%. All three major US indexes finished higher in the previous session, capping off a strong first half of the year.
The S&P 500 gained 9.55% in the first six months of 2026, while the Nasdaq 100 outperformed with a 20% gain. The Dow rose 8.9%, its best first-half performance since 2021.
After aggressively increasing exposure to chip and memory stocks in the first half of 2026 — some of which delivered gains of up to 300% — investors are now looking for more clarity on whether the AI-driven rally has room to run, especially amid rising expectations of a rate hike by the U.S. Federal Reserve.
The head of the US Federal Reserve System, Kevin Warsh, is expected to make his first public appearance overseas since taking over the leadership of the Fed. Warsh will speak alongside central bank chiefs from Europe and the United Kingdom at an ECB forum in Sintra, Portugal, Bloomberg reports.
His hawkish remarks last month, in which he reaffirmed the Fed’s commitment to restoring price stability, pushed the US dollar and short-term Treasury yields higher.
Meanwhile, traders in the Fed funds market raised bets that the Fed could start raising interest rates as early as July, a scenario that will depend heavily on upcoming economic data.
Economic data released on Tuesday showed U.S. job vacancies were largely unchanged in May, signaling resilient demand for jobs, while consumer confidence improved in June thanks to lower gasoline prices despite lingering concerns about the labor market.
Geopolitical uncertainty remained in the spotlight in the Middle East after Iran reportedly said on Tuesday it would not meet senior US envoys traveling to the region following the latest escalation of hostilities.
The development came after Iranian officials indicated that Tehran and Washington still needed to finalize the terms of an interim peace deal signed last month before moving on to more contentious issues, including Iran’s nuclear program, Reuters reported.
Read also | Trump raised the possibility of an all-out war with Iran, but decided to stick with the talksRead also | US-Iran war news Highlights: Not compromising Hormuz rights, Iran says
Crude oil leaks as shipping recovers in Strait of Hormuz
Oil prices fell slightly as shipping through the Strait of Hormuz continued to recover. Brent crude fell below $72 a barrel after falling nearly one-third over the past three months, while West Texas Intermediate (WTI) traded near $68 a barrel.
Oil tanker traffic has gradually increased since the US and Iran exchanged strikes at the weekend, although vessel movements remain below pre-conflict levels.
Meanwhile, Goldman Sachs said the global oil market is likely to return to oversupplied conditions as the impact of the Iran conflict subsides and shipping through the Strait of Hormuz normalizes.
However, risks remain. Iran has reiterated its intention to retain control of maritime traffic through the strategic waterway, stressing that key issues – including its nuclear program and the conflict in Lebanon – remain unresolved and could complicate negotiations during the 60-day ceasefire period.
Read also | Oil prices rise amid uncertainty over US-Iran talks; Brent crude at $73 a barRead also | Oil prices fall on possible US-Iran talks; Brent nearly $72 per barrel
(With input from Bloomberg and Reuters)
