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* Futures down: Dow 0.28%, S&P 0.1%, Nasdaq flat
June 3 (Reuters) - U.S. stock index futures stalled near
record highs on Wednesday as rising crude oil prices weighed on
sentiment, with a flare-up in the Middle East conflict signaling
little progress in efforts to end the months-long war.
Brent crude futures rose 1.6% to $97.56 a barrel after an
Iranian missile attack damaged Kuwait's airport and the U.S.
military carried out strikes near the Strait of Hormuz, raising
the risk of further supply disruption that could stoke broader
inflation.
"It is not in the interest of either the U.S. or Iran to go
back towards fighting and bombing. Our base case scenario
remains that we would be moving towards a deal; even if it's a
fudge to get the Strait of Hormuz opened," Jefferies economist
Mohit Kumar wrote in a note.
Hopes for an end to the war, alongside a run of upbeat
corporate updates, have underpinned Wall Street's rally to
record highs.
Shares have also been boosted by recent developments that
have reinforced expectations of sustained AI spending.
Nvidia ( NVDA ) has launched new chips for desktop and
laptop systems, while Dell and Hewlett Packard
Enterprise ( HPE ) have topped earnings forecasts and Alphabet
plans to raise $80 billion to fund its AI expansion.
Marvell Technology ( MRVL ) soared 15% in premarket trading
to top $290 billion in market value, extending gains a day after
Nvidia ( NVDA ) CEO Jensen Huang called the chipmaker the next
"trillion-dollar company."
Broadcom ( AVGO ) shares rose 3% ahead of its quarterly
report due after market close. The results would be the next key
test of AI-driven momentum, with the firm's shares rising 14% in
the past four sessions.
Elon Musk's SpaceX plans to fix its IPO price at $135 per
share ahead of its roadshow to raise a record-setting $75
billion, a source familiar with the matter told Reuters.
The listing leads a wave of high-profile private companies
preparing to test public markets including Anthropic and OpenAI
after years of muted large-cap IPO activity.
At 4:23 a.m. ET, Dow E-minis were down 145 points,
or 0.28%, and S&P 500 E-minis were down 7.25 points,
or 0.1%. Nasdaq 100 E-minis were down 3 points,
or 0.01%.
All three major stock indexes closed at record highs on
Tuesday, with the S&P 500 finishing above 7,600 for the first
time.
Investors are also focused on upcoming economic data,
including S&P Global's manufacturing and services surveys and
the ISM services index, ahead of Friday's closely watched labor
market report, which could shape expectations for monetary
policy.
Federal Reserve Chair Kevin Warsh pledged to follow "the
best of the Fed's traditions" in a note to staff at the start of
his four-year term.
(Reporting by Medha Singh in Bengaluru; Editing by Mrigank
Dhaniwala)