(RTTNews) - After moving substantially higher over the two previous sessions, stocks are likely to move back to the downside in early trading on Thursday. The major index futures are currently pointing to a sharply lower open for the markets, with the S&P 500 futures down by 1.5 percent.
Renewed concerns about an escalation of the conflict in the Middle East are likely to weigh on Wall Street following President Donald Trump's primetime address Wednesday night.
Trump's speech largely echoed his recent comments and Truth Social posts, but traders seem to be responding negatively to the tone of his remarks.
The president reiterated his claim that the war will be over "very shortly" but also said the U.S. is going to hit Iran "extremely hard over the next two to three weeks," bringing the country "back to the stone ages where they belong."
Trump also once again called on other countries to "build up some delayed courage" and take control of the vital Strait of Hormuz, claiming, "The hard part is done."
After moving sharply lower over the past two days amid optimism an end to the conflict, crude oil prices have skyrocketed in reaction to Trump's speech, with U.S. crude oil futures spiking by more than 11 percent.
"Investors didn't get what they wanted from President Trump's address to the American people and have reacted accordingly," said AJ Bell investment director Russ Mould.
He added, "Famously, uncertainty is kryptonite for the markets and between the contradictory messages from Trump, disputed claims on both sides, and the lack of clarity on a plan which can provide a resolution to the conflict they are getting a heavy dose of it right now."
Stocks moved mostly higher during trading on Wednesday, adding to the substantial gains posted during Tuesday's session. The major averages all moved to the upside, with the tech-heavy Nasdaq posting a standout gain.
The major averages gave back some ground in afternoon trading after a morning rally but remained firmly positive. The Nasdaq jumped 250.32 points or 1.2 percent to 21,840.95, the S&P 500 climbed 46.80 points or 0.7 percent to 6,575.32 and the Dow rose 224.23 points or 0.5 percent to 46,565.74.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Thursday. Japan's Nikkei 225 Index tumbled by 2.4 percent, while China's Shanghai Composite Index slid by 0.7 percent.
The major European markets have also moved to the downside on the day. While the German DAX Index is down by 2.4 percent, the French CAC 40 Index is down by 1.4 percent and the U.K.'s FTSE 100 Index is down by 0.6 percent.
In commodities trading, crude oil futures are soaring $11.11 to $111.23 a barrel after slumping $1.26 to $100.12 barrel on Wednesday. Meanwhile, after jumping $133.40 to $4,796.10 an ounce in the previous session, gold futures are plunging $161.60 to $4,634.50 an ounce.
On the currency front, the U.S. dollar is trading at 159.58 yen versus the 158.78 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.1527 compared to yesterday's $1.1588.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
