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Futures down: Dow 0.42%, S&P 500 0.29%, Nasdaq 0.25%
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Boeing ( BA ) shares fall after Air India plane crash
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Oracle up after raising its annual revenue forecast
(Updates before markets open)
By Kanchana Chakravarty and Sukriti Gupta
June 12 (Reuters) - Wall Street's main indexes were
poised for a lower open on Thursday as signs of rising tensions
in the Middle East hurt risk sentiment and investors sought more
clarity on Washington's recent trade deals with China.
Shares of planemaker Boeing ( BA ) lost 6.3% premarket after
an Air India aircraft with more than 200 people crashed in
India's western city of Ahmedabad, and aviation tracking site
Flightradar24 said the plane was a Boeing 787-8 Dreamliner.
Underscoring increased volatility in the Middle East,
President Donald Trump said on Wednesday U.S. personnel were
being moved out of the region as it could be a "dangerous place"
and the United States would not allow Iran to have a nuclear
weapon.
"The clearing out of our embassies in the Middle East of
non-essential employees sends a signal that we're anticipating
some turbulent times," said Kim Forrest, chief investment
officer at Bokeh Capital Partners.
With a few days left till a planned sixth round of nuclear
talks between the United States and Iran, a senior Iranian
official said on Wednesday Tehran will strike U.S. bases in the
region if nuclear negotiations fail and conflict arises.
China on Thursday affirmed a trade deal with the U.S.,
strengthening a delicate truce in the trade war that has roiled
global markets for much of the year.
"Now that a consensus has been reached, both sides should
abide by it," Lin Jian, a foreign ministry spokesperson for
China, said at a regular news conference.
Traders also looked to gain more details on the trade
framework discussed by officials from both sides at a two-day
talk in London earlier this week.
At 08:49 a.m. ET, Dow E-minis were down 180 points,
or 0.42%, S&P 500 E-minis were down 17.5 points, or
0.29%, and Nasdaq 100 E-minis were down 53.75 points, or
0.25%.
Tesla shares lost 1.1% and Nvidia ( NVDA ) declined
about 1%.
Among other movers, Oracle shares rose 8.7% after
the cloud service provider raised its annual revenue growth
forecast citing increased demand from companies deploying
artificial intelligence.
U.S.-listed shares of gold miners also advanced, as bullion
prices hit a one-week high.
Newmont ( NEM ) gained 1.8%, Harmony Gold was up
2.9% and AngloGold Ashanti ( AU ) rose 5.5%.
Shares of Oklo ( OKLO ) fell 5.9% after the nuclear
technology firm backed by Sam Altman launched a $400 million
stock offering.
After a tame consumer price report on Wednesday,
softer-than-expected producer price data and largely unchanged
initial jobless claims helped reduce investor jitters around
tariff-driven price pressures.
Traders are pricing in 56 basis points of rate cuts by
year-end, per data compiled by LSEG. They are penciling in a 61%
chance of a 25 bps cut in September, according to the CME
Group's FedWatch tool. Policymakers are widely expected to keep
rates unchanged next week.
With investor bets increasing on Trump reaching favorable
trade agreements with several trading partners in the coming
weeks, the benchmark S&P 500 index is trading 2% below
its record high touched in February.
The tech-heavy Nasdaq is about 2.7% from record
levels hit in December.
(Reporting by Kanchana Chakravarty and Sukriti Gupta in
Bengaluru; Editing by Devika Syamnath)