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Futures up: Dow 0.09%, S&P 500 0.23%, Nasdaq 0.28%
June 23 (Reuters) - U.S. stock index futures edged up on
Monday after oil prices pulled back from sharp gains earlier
with investors awaiting Iran's response to U.S. attacks on its
nuclear sites.
Over the weekend, the United States launched strikes on
Iran's nuclear facilities, and President Donald Trump hinted at
the possibility of regime change in Iran.
Oil prices briefly hit a five-month high amid rising
concerns around Iran shutting the Strait of Hormuz, a key oil
supply route. Brent futures were nearly flat at $77.06 a
barrel as of 05:49 a.m. ET.
Energy stocks rose in premarket trade, tracking a surge in
crude prices. Shares of energy majors Chevron ( CVX ) rose 0.8%
and Exxon gained 1.1%.
Defense stocks also rose, with Lockheed Martin ( LMT ) up
0.8%, RTX Corporation ( RTX ) gaining 0.9%, Northrop Grumman ( NOC )
advancing 1.2% and L3harris Technologies ( LHX ) jumping
1.3%.
"There is tension but not trauma as investors monitor
developments in the Middle East," Richard Hunter, head of
markets at Interactive Investor, said in a note.
As markets grapple with existing price pressures from
Trump's tariffs, the oil price volatility adds a new layer of
inflation concerns, with the 90-day suspension for U.S. tariffs
nearing.
At 05:15 a.m. ET, Dow E-minis were up 38 points, or
0.09%, S&P 500 E-minis were up 13.75 points, or 0.23%.
Nasdaq 100 E-minis were up 61.25 points, or 0.28%.
Among other movers, Tesla rose 1.6% after the
electric vehicle maker deployed 10 self-driving taxis in Texas,
marking the first time Tesla cars without human drivers carried
paying riders.
Shares of U.S. carriers were mostly down, with Delta Air
Lines ( DAL ), Southwest Airlines ( LUV ), United Airlines
and American Airlines ( AAL ) falling between 0.3% and
0.8%.
Following a strong rally in equities last month, which
pushed indexes close to their record levels, investor momentum
was bruised by rising geopolitical tensions.
The benchmark S&P 500 index remains about 3% below
its record level.
In major data, preliminary June PMI data is due at 09:45
a.m. ET and existing home sales data for May is scheduled at
10:00 a.m. ET.
U.S. Federal Reserve Board Governor Christopher Waller, Fed
Chicago President Austan Goolsbee, and Fed San Francisco
President Mary Daly are scheduled to speak later in the day.